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Obtaining a letter of credit for each customer

Problem:

"I would not sell to these companies without a letter of credit. That would just be adding more risk on top of risk. It is risky enough conducting business outside of a person's country; not adding a letter of credit would not be a smart idea."

What if you were a small company and obtaining a letter of credit for each customer would be costly? Would you perhaps look to the reputation of the customer, if possible? How might you go about in doing that and for what type of customers?

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Finance Basics: Obtaining a letter of credit for each customer

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