Answer: letter of credit .
Step-by-step explanation:
A letter of credit is known as
- a trade finance mechanism also known as "letter of undertaking" used as a guarantee document that the payment of goods and services will be fulfilled between a seller and a buyer.
- It is also known as documentary credit or a bankers commercial credit.
Hence, Importers Direct arranged to have a French winery ship a large quantity of fine wine to the United States. By signing a letter of credit , Importers Direct authorized its bank to make full payment to the French winery if and when the wine arrives at the Importers Direct warehouse in Philadelphia.