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.

Why would ChemInt prefer an irrevocable documentary credit 60 days after invoice date instead of open account, as recommended by the buyer? Your answer must relate to the information provided and not a general discussion.