Even though ChemInt (Pty) Ltd has been exporting for several years, the board takes a very conservative view when it comes to payment terms with buyers. The board is discussing the potential growth for the company should they sign a major deal with a large retailer, that has outlets all over the EU and UK. Until now ChemInt focused only on distributors, therefore entering into this deal is both exciting and stressful. The retailer suggested open account 60 days after invoice date as the payment option. By referring to the credit consideration in terms of international payments, answer the following questions:

After much deliberation, ChemInt decided that not adhering to the clients request of open account will be the main reason for the buyer not concluding this contract with it. Examine which options are available in the marketplace for ChemInt to manage its risk.

2. Explanation of exactly how this product can assist ChemInt in financial risk management.