Forms of Short-term Financing/Activities

Activity
Take the following financing options and group them together in similar risk groups and then rate them according to risk level starting with the highest risk for the seller moving to the lowest risk. This particular risk rating will correspond to the lowest risk for the buyer moving to the highest risk to the buyer.

Bankers acceptances Bank financing Commercial Letter of Credit Documentary collections Ex-Im Bank Export credit insurance Factoring Forfaiting Personal resources SBA Standby letters of credit Transferable letters of credit Vendors

After ranking the risk, provide the minimum requirements necessary for the seller to utilize each form of financing and their associated costs.