Trade Finance
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