a.k.a. Open Credit

The most frequent alternative to a LC is a line of open credit — a pre-approved financial arrangement that allows the buyer to make purchases up to a specific sum without producing guarantees. The reputational blow to companies that fail to honour an open-credit transaction usually ensures payment under normal trade circumstances. Accepting payment on open credit could prove riskier for sellers at present — any sanctions that explicitly target the Russian energy sector would prevent buyers from making payment.