Question 5
Crest Footwear is an importer of footwear from Thailand. The footwear supplier in Thailand wants to complete payment via a Letter of Credit and Crest Footwear needs to confirm that it can accommodate this request.
Crest Footwear needs to also hold their stock for 60 days in Australia before it can sell it to the department stores that have contracts to sell its products.
The time lag between purchasing the stock and selling it can create working capital challenges for Crest Footwear.
What TWO Trade Finance solutions could be used in tandem to potentially solve this client need? (Note: There is more than one answer.)