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ivanzaharov [21]
3 years ago
12

George owns Luxury Yacht Company and has just received an order for one of its luxury models. To protect his company against the

possibility that the customer cannot pay or that other economic and political conditions might intervene, he asks the customer to provide a __________.
Business
1 answer:
Mariulka [41]3 years ago
3 0

Answer: Letter of credit

Explanation:

 The letter of credit is one of the type of payment process that is specifically used for the purpose of international trading as it helps in proving the economical guarantee from the bank to the trader of various type of goods and the services.

 The letter of credit is also refers as the documentary based credit and also the guarantee undertaking letter which is used at the time of payment and the main advantage of the letter of credit is that it is highly customizable, safety business process, Payment assured and also free from all the types of credit risk.        

According to the given scenario, George asked the customer for providing the letter of credit for the purpose of protect his company fro the various types of payment and economical issue.  

  Therefore, Letter of credit is the correct answer.

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