A bill of lading can function as collateral against which funds are ad

QUESTION

A bill of lading can function as collateral against which funds are advanced to the exporter by its local bank before final payment by the importer

Indicate whether the statement is true or false.

ANSWER

TRUE
A bill of lading is issued to the exporter by the common carrier transporting the merchandise. It can function as collateral against which funds may be advanced to the exporter by its local bank before or during shipment and before final payment by the importer