In cross border trade, there is always a credit risk for both buyer and suppliers because both are unknown to each other and at the same time, different legality/ sets of rules are applicable to different countries.
In this circumstance, Buyer’s Credit plays a vital role during international transactions and facilitates such international deals with negligible chances of default.
In this article, we will understand, what exactly is the buyer’s credit? And how it facilitates the export & import of goods/ services around the globe. Apart from this, we will also discuss, the mechanism of issuing buyer’s credit and how it is settled between buyers and suppliers.