Trade finance incorporates national and international financing of the trade between buyers and sellers. Trade finance is used when financing is required by buyers and sellers to assist them with the trade cycle funding gap. When a seller (or exporter) requires the buyer (an importer) to prepay for goods shipped, the buyer may wish to reduce risk by requiring the seller to document the goods that have been shipped. The buyer’s bank may provide a letter of credit to the seller (or their bank) providing for payment upon presentation of certain documents, such as a bill of lading. The seller’s bank may also make a loan on the basis of the export contract.
Talk to DotCapital about your trade finance needs and requirements.