"Trade finance is a phrase used to describe different strategies that are employed to make international trade easier."
Financial tools and services that facilitate international trade, such as letters of credit, export insurance, and factoring.
International trade theory: This involves understanding the concepts and principles behind international trade, including comparative advantage, absolute advantage, and the theory of factor endowments.
Import-export documentation: This covers the various documents involved in international trade transactions, such as bill of lading, commercial invoice, packing list, and certificate of origin.
International payment methods: This includes the different ways to make and receive payments in international trade, such as letters of credit, bank guarantees, and documentary collections.
Export finance: This involves the financing options available for exporters, such as pre-export finance, post-shipment finance, and export credit insurance.
Import finance: This includes the financing options available for importers, such as pre-import finance, post-import finance, and import credit insurance.
FX risk management: This covers the strategies to manage foreign exchange risk when engaging in international trade, such as forward contracts and currency options.
Incoterms: This refers to the standardized terms used in international trade to define responsibilities and obligations between buyers and sellers.
Customs clearance: This covers the process of clearing goods through customs and complying with import and export regulations.
International trade finance regulations: This includes the laws and regulations governing international trade finance transactions, such as the International Chamber of Commerce (ICC) rules and regulations.
Supply chain finance: This involves the financing strategies available for improving the efficiency and liquidity of the supply chain, such as factoring, reverse factoring, and dynamic discounting.
Import finance: A type of trade finance where funds are provided to an importer to purchase goods/services from a foreign supplier.
Export finance: A type of trade finance where funds are provided to an exporter to finance the production and sale of goods/services to overseas customers.
Pre-export finance: A type of trade finance offered to exporters to finance the production process before the goods are shipped.
Post-shipment finance: A type of financing provided to exporters to bridge the payment gap between shipment and payment from the buyer.
Supply Chain Finance: A type of finance used to provide funds to suppliers and buyers in the supply chain to optimize cash flows and reduce working capital.
Invoice factoring: A type of financing where a factor purchases an outstanding invoice from a company at a discounted rate, giving the company immediate access to funds.
Forfeiting: A type of financing where the financier purchases an exporter's receivables at a discounted rate, taking on the risk of non-payment.
Letters of credit: An instrument used to guarantee payment to a supplier/exporter upon meeting certain conditions set out in the letter of credit.
Bank guarantees: A type of trade finance instrument used to minimize the risk to the buyer, guaranteeing that the seller will fulfill their contractual obligations.
Structured trade finance: A type of financing that involves the use of multiple financing techniques to mitigate risk and fund a trade transaction.
"It signifies financing for trade, and it concerns both domestic and international trade transactions."
"A trade transaction requires a seller of goods and services as well as a buyer."
"Various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade."
"Trade finance manifests itself in the form of letters of credit (LOC), guarantees or insurance."
"Trade finance is usually provided by intermediaries."
"Trade finance manifests itself in the form of letters of credit (LOC)."
"Trade finance is employed to make international trade easier."
"It signifies financing for trade."
"Trade finance manifests itself in the form of guarantees or insurance."
"A trade transaction requires a seller of goods and services as well as a buyer."
"Various intermediaries such as banks and financial institutions can facilitate these transactions."
"Various intermediaries such as banks and financial institutions can facilitate these transactions."
"To make international trade easier."
"Trade finance manifests itself in the form of letters of credit (LOC), guarantees or insurance."
"Various intermediaries such as banks and financial institutions can facilitate these transactions."
"It signifies financing for trade."
"It signifies financing for trade."
"It is employed to make international trade easier."
"It concerns both domestic and international trade transactions."