Trade Finance

Trade finance is the financing of international trade flows. It exists to mitigate, or reduce, the risks involved in an international trade transaction.

There are two players in a trade transaction: (1)an exporter, who requires payment for their goods or services, and (2)an importer who wants to make sure they are paying for the correct quality and quantity of goods.

These are the different types of trade finance:

• Letter of credit
• Supply chain finance
• Structured trade and commodity finance
• Export and agency finance
• Trade credit and political risk insurance