What is trade finance?
Eligibility and exclusions
Benefits and scenarios
Things you can use to secure the finance
Is trade finance a good fit for you?
Trade finance helps you access additional funds
to explore new markets abroad and trade at a global
level. It opens your customer base wider as well.
International trade finance has the advantage of having
a lower information requirement, as it relies on the
strength of the transaction. Trade finance gives you
access to working capital which might have been tied up
in goods still yet to arrive from abroad.
Trade finance can be an expensive form of financing.
This is because there is a higher risk involved for the
There’s a chance that the businesses you deal with
overseas default on payments, which could have a
negative effect on your business.
It can also be a complex means of finance as it can
involve a range of differing financial instruments like
letters of credit.
To secure trade finance, you usually need evidence
that your business has international operations and
is in a sound financial position. Having a record of
trusted suppliers and customers, and consistent trade
patterns will improve your chances of securing access
to trade finance.
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