Trade finance covers finance relating to international and national trade transactions. When a buyer purchases goods or services from a seller, the financial activities involved come under the umbrella term trade finance.

Trade financing can include:

• Lending facilities
• Trade Finance
• Issuing Letters of Credit (LCs)
• Bank Guarantees
• Invoice Finance
• Export factoring (companies receive funds against invoices or accounts receivable)
• Forfaiting (purchasing the receivables or traded goods from an exporter)
• Export credits (to reduce risks to funders when providing trade or supply chain finance)
• Insurance (during delivery and shipping, also covers currency risk and exposure)
• Cash against documents
• Bonds and bank guarantees
• Asset backed facilities