Financing options available to support the international expansion of businesses.
International Trade: Understanding the basic concept of international trade, the importance of exports and their impact on the global economy.
Payment methods: The different payment methods available for international trade transactions, including cash in advance, letters of credit, documentary collections, and open account.
Export credit insurance: The types of export credit insurance available, what it covers, and how it benefits exporters.
International trade regulations: Laws, regulations, and policies governing international trade, such as export controls, tariffs, and trade agreements.
Currency exchange: The role of currency exchange in international trade, understanding the currency market, and how to manage currency risk exposure.
International financial institutions: Understanding the role of international financial institutions like the World Bank, International Monetary Fund, and export credit agencies in facilitating international trade.
Export finance products: An overview of different export finance products, including export loans, export credit guarantees, export credit insurance, and factoring.
Country risk assessment: How to assess risks associated with exporting to specific countries, including political, economic, and financial risks.
Export documentation: Types of export documentation required, how to complete them correctly, and the importance of keeping accurate records.
Incoterms: Explanation of Incoterms, their importance, and how they affect the cost and risk of international trade transactions.
Supply chain finance: How to use supply chain finance to access lower-cost financing, mitigate risks, and enhance creditworthiness.
Trade finance fraud: Types of trade finance fraud, how to avoid it, and what to do if it happens.
Sale contract: Understanding the structure, content, and terms of an international sale contract.
Shipping logistics: Clearing customs, forwarding, insurance, and the logistics of moving goods from one location to another.
Pre-shipment finance: This financing option helps exporters to cover the costs of manufacturing, processing and transporting goods to the buyer before the shipment is made.
Post-shipment finance: This financing option is used to bridge the cash flow gap between making a shipment and receiving payment.
Packing credit: This type of financing is offered to exporters to help them finance the packaging and other preparatory costs of goods and raw materials.
Factoring: This is an arrangement whereby the exporter sells outstanding invoices to a bank or factoring company, which provides immediate cash in exchange.
Forfeiting: This is an arrangement where the exporter sells their receivables to a forfaiter, a specialized financing institution. In exchange, the exporter receives immediate cash and transfers the risk of non-payment to the forfaiter.
Export credit insurance: This is a type of insurance that protects exporters from non-payment by foreign buyers due to political or commercial risks.
Export credit agencies: These agencies provide financing, insurance and other types of support to exporters, often in partnership with commercial banks.
Export factoring: This is a type of factoring where the exporter transfers the credit risk of the buyer to the factor. In exchange, the factor provides immediate cash in exchange for the receivables.
Discounting: This financing option involves the sale of trade bills to banks at a discounted price, in exchange for cash.
Structured trade finance: This is a customized financing package for specific export transactions, often involving complex financial instruments such as derivatives.
Countertrade: This involves trading goods or services between countries, where some or all of the payment is made in goods or services rather than cash.
Barter trade: This involves the exchange of goods or services between countries without involving cash payments.
Export leasing: This financing option involves leasing goods to foreign buyers with an option to purchase at the end of the lease period.
Export working capital: This financing option provides funds to exporters to cover the working capital needs of their international trade activities.
Bid bonds and performance bonds: These are guaranteed by banks or insurance companies to protect buyers and sellers in international trade transactions.