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Whenever there's an import or export of goods among borders there may be commerce finance involved. Now to import the products the company MHW needs to pay for the goods, but it surely desires to make sure that the goods should arrive as ordered and thus is hesitating in processing the payment. Let's assume that there is a company named MHW in India and this firm needs to import a certain number of products from a supplier company that is located within the United States. The importer's financial institution points a letter of credit to the exporter via the exporter's bank and promises to pay the required amount once the exporter financial institution offers the valid documents proving the ordered goods have been loaded to the ship or any other technique of transport. Now on the identical hand, the exporter can also be hesitant to ship the goods, without being certain that the payment will arrive for the goods they provide.