Trading with foreign partners, both through purchase and sale, can present significant risks.  These risks become increasingly higher the longer the credit periods are.  Generally, bank transactions are secured through certified letters of credit.  These can lead to significant financing requirements for a company.  It isn’t always straightforward to get sufficient credit lines from the bank, as they often exclude certain countries or only provide small capacities.  When the bank’s credit line has been exhausted, the financing typically comes to an end.