{"id":8813,"date":"2016-10-19T22:10:11","date_gmt":"2016-10-19T22:10:11","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=8813"},"modified":"2025-02-12T15:35:11","modified_gmt":"2025-02-12T15:35:11","slug":"trade-finance","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/trade-finance\/","title":{"rendered":"Trade Finance Introduction"},"content":{"rendered":"\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-header-without-image d-flex flex-direction-column justify-content-center\">\n    <h2 class=\"fs-32 fw-700 fs-xs-28 not-for-table-content\" id=\"heading-trade-finance-introduction\">\n        Trade Finance Introduction    <\/h2>\n    <div class=\"d-grid grid-col-2 grid-col-xs-1\">\n                            <div class=\"\">\n                <div>Last updated on 12 Feb 2025<\/div>\n                <div>19 Oct 2016 . 3 min read<\/div>\n            <\/div>\n            <\/div>\n    <\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Trade-Finance-Introduction-_-2024-Trade-Finance-Guide-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #f2f5f7 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-trade-finance-essentials\">Trade Finance Essentials<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance\/\">\n        Introduction &#038; Benefits      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/payment-methods\/\">\n        Methods of Payment      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/risks-challenges\/\">\n        Risks &#038; Challenges      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<div class=\"wp-block-columns h-100 mb-0 is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #ebf5f4 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-types-of-trade-finance\">Types of Trade Finance<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/types-of-trade-finance\/\">\n        Types of Trade Financing      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/pre-post-shipment-trade-finance\/\">\n        Pre &#038; Post-Shipment Finance      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance\/structured-terms-of-payment\/\">\n        Structured Terms of Payment      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance\/recourse-non-recourse\/\">\n        Recourse &amp; Non-Recourse Trade Finance      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #e5f5ff !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-practical-assistance\">Practical Assistance<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/lender-types\/\">\n        Trade &#038; Export Finance Providers      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance-process\/\">\n        Credit Process      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance\/trade-finance-partners\/\">\n        Trade Finance Partners      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance\/trade-finance-providers\/\">\n        Trade Finance Providers      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance\/trade-finance-solutions\/\">\n        Trade Finance Solutions      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #E6FAFE !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-guides\">Guides<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/editions\/trade-finance-itfa-guide-2020\/\">\n        Trade Finance Guide      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/editions\/sme-guide-2020\/\">\n        SME Trade Finance Guide      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/editions\/baft-guide-download\/\">\n        Letters of Credit Guide      <\/a>\n      <\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<p>This content was produced in conjunction with ITFA.<\/p>\n\n\n<div class=\"bg-light-blue d-flex gap-16 h-auto p-16 rounded xs-flex-direction-column\">\n    <div class=\"\">\n    <img decoding=\"async\" style=\"min-width:100px;max-width: 150px\" src=\"https:\/\/secure.gravatar.com\/avatar\/adbea0e7d528d8822bada7096c1e6ea9?s=160&#038;d=mm&#038;r=g\" class=\"w-100 rounded\">\n  <\/div>\n  <div class=\"col-span-2 col-span-xs-1\">\n    <div class=\"d-flex flex-direction-column gap-16 fs-16 justify-content-between\">\n      <div class=\"fs-16 fw-700\">Mark Abrams<\/div>\n      <div class=\"fs-14 fw-400 elipsise-2-line\" title=\"Mark heads up the trade finance offering at TFG where\u00a0his team focuses on bringing in alternative structured finance to international trading companies.\">\n        Mark heads up the trade finance offering at TFG where\u00a0his team focuses on bringing in alternative structured finance to international trading companies.      <\/div>\n      <div>\n        <a class=\"text-black fs-12 small-link-arrow-right\" href=\"https:\/\/www.tradefinanceglobal.com\/posts\/?author=74\">\n          <span>\n            Latest Post          <\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<div style=\"min-height:100px!important;\" class=\"block-cta max-w-100 p-32 h-auto rounded sm-w-60 dark-mode bg-black align wp-block-acf-block-cta\">\n  <h4 id=\"heading-access-trade-receivables-and-supply-chain-finance\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Access trade, receivables and supply chain finance  <\/h4>\n  <p class=\"block-subtitle dark:color-white\">We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.<\/p>\n  <a href=\"https:\/\/www.tradefinanceglobal.com\/get-trade-finance\/\" class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n    <span>Get Started<\/span>\n  <\/a>\n<\/div>\n\n<div class=\"block-cta p-24 h-auto rounded\">\n    <h4 id=\"heading-\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n      <\/h4>\n  <p class=\"fs-16 fw-400 dark:color-white\">Download our free trade finance guide<\/p>\n  <div class=\"mb-20\">\n    <img loading='lazy' alt='Trade-Finance-Guide-CTA-ITFA-TFG (1)' style='width:auto; height:200px'  width='auto' height='auto' src='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-150x150.jpg' srcset='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-300x300.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-150x150.jpg 150w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-320x320.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-370x370.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-414x414.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-200x200.jpg 200w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-250x250.jpg 250w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-162x162.jpg 162w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-159x159.jpg 159w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-123x123.jpg 123w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1-190x190.jpg 190w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/06\/Trade-Finance-Guide-CTA-ITFA-TFG-1.jpg 500w' \/>  <\/div>\n      <a href=\"https:\/\/www.tradefinanceglobal.com\/login\/?redirect_url=https%3A%2F%2Fwww.tradefinanceglobal.com%2Fwp-json%2Fwp%2Fv2%2Fpages%2F8813\"  class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n      <span>Download<\/span>\n    <\/a>\n    <\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-contents\">Contents<\/h2>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p><\/p>\n\n\n<div class=\"block-content align bg-tale rounded p-24 fs-16 h-auto wp-block-acf-block-content\"style=\"background-color: #FFFFFF;color: #002F4D;\"\n>\n    <p>Welcome to the TFG Trade Finance hub. Find out how we can help you access trade finance to increase your cross-border imports and exports, or learn about trade finance through our latest research, information, and insights here.<\/p>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons h-auto is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.tradefinanceglobal.com\/get-trade-finance\">Access Trade Finance<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#learnmoreabout\">Learn about trade finance<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"What is Trade Finance?\" width=\"960\" height=\"540\" src=\"https:\/\/www.youtube.com\/embed\/OHvOyUGcC5Y?feature=oembed&#038;enablejsapi=1&#038;origin=https:\/\/www.tradefinanceglobal.com\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group\" style=\"font-size:16px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\" id=\"h-what-is-trade-finance\">What is trade finance?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Trade finance is the financing of goods or services in a trade transaction, at any point from a supplier all the way through to the end buyer.<\/p>\n\n\n\n<p style=\"font-size:16px\">Managing cash and working capital is critical to the success of any business, and trade finance is a tool that can be used to unlock capital from a company\u2019s existing stock, receivables, or purchase orders.<\/p>\n\n\n\n<p style=\"font-size:16px\">In turn, trade finance allows businesses to offer more competitive terms to both suppliers and customers, by reducing payment gaps in a business\u2019s trade cycle.&nbsp;<\/p>\n\n\n\n<p style=\"font-size:16px\">Put simply, trade finance helps to facilitate the growth of a business and is a powerful driver of economic development.&nbsp;<\/p>\n\n\n\n<p style=\"font-size:16px\">The&nbsp;<a href=\"https:\/\/www.wto.org\/english\/res_e\/booksp_e\/tradefinsme_e.pdf\">World Trade Organization (WTO) estimates that up to 80% of global trade uses trade finance<\/a>, and in 2020, the International Chamber of Commerce (ICC) put&nbsp;the&nbsp;<a href=\"https:\/\/iccwbo.org\/publication\/global-survey\/\">value of the global trade finance industry at $9 trillion<\/a>.<\/p>\n\n\n\n<p style=\"font-size:16px\">Financial institutions support international trade through a wide range of products that help traders manage their international payments and associated risks, and cater to working capital needs.<\/p>\n\n\n\n<p style=\"font-size:16px\">Trade finance deals typically involve at least three parties: an importer (buyer), an exporter (seller), and a financier.&nbsp;<\/p>\n\n\n\n<p style=\"font-size:16px\">These deals differ from other types of credit products, and should have the following features:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\">An underlying supply of a product or service<\/li>\n\n\n\n<li style=\"font-size:16px\">A purchase and sales contract<\/li>\n\n\n\n<li style=\"font-size:16px\">Shipping and delivery details<\/li>\n\n\n\n<li style=\"font-size:16px\">Other required documentation (e.g. certificates of origin)<\/li>\n\n\n\n<li style=\"font-size:16px\">Insurance cover<\/li>\n\n\n\n<li style=\"font-size:16px\">Terms and instruments of payment<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Trade finance is an umbrella term that can refer to a variety of financial instruments used by importers and exporters.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\">Purchase order (PO) finance<\/li>\n\n\n\n<li style=\"font-size:16px\">Stock or warehouse finance<\/li>\n\n\n\n<li style=\"font-size:16px\">Structured&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/commodity-trading\/\">commodity<\/a>&nbsp;finance<\/li>\n\n\n\n<li style=\"font-size:16px\">Invoice and receivables finance (discounting and factoring)<\/li>\n\n\n\n<li style=\"font-size:16px\">Supply chain finance (also known as payables finance)<\/li>\n\n\n\n<li style=\"font-size:16px\">Letters of credit (LCs)<\/li>\n\n\n\n<li style=\"font-size:16px\">Bonds and bank guarantees<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">The terms import finance and export finance are also used interchangeably with trade finance.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-main-benefits-of-trade-finance-for-companies\">What are the main benefits of trade finance for companies?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Trade finance helps businesses grow by guaranteeing or providing finance to help them to buy goods and stock, which is often necessary when they don\u2019t know or trust other parties in the supply chain.<\/p>\n\n\n\n<p style=\"font-size:16px\">Many companies use trade finance because it helps them unlock capital from their stock or receivables, which can then be used to finance future growth and development.<\/p>\n\n\n\n<p style=\"font-size:16px\">Similarly, using trade finance allows businesses to request higher volumes of stock or place larger orders with suppliers, leading to economies of scale and bulk discounts.<\/p>\n\n\n\n<p style=\"font-size:16px\">A trade finance facility may allow you to offer more competitive terms to both suppliers and customers, by reducing payment gaps in your trade cycle.<\/p>\n\n\n\n<p style=\"font-size:16px\">It is therefore beneficial not only for business growth, but also for supply chain relationships.<br>It also increases the revenue potential of a business, as earlier payments may allow for higher margins.<\/p>\n\n\n\n<p style=\"font-size:16px\">Managing cashflow and working capital is critical to the success of any business, which require reducing metrics such as days payable outstanding (DPO) or days sale outstanding (DSO).<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-who-benefits-from-trade-finance\">Who benefits from trade finance?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">SMEs, large corporations, and even governments use trade finance to achieve a range of growth goals.<\/p>\n\n\n\n<p style=\"font-size:16px\">This could include increasing the size and scope of the goods and services they trade in, scaling up their global operations, or helping them fulfil large contracts.<\/p>\n\n\n\n<p style=\"font-size:16px\">SMEs can benefit because trade finance focuses more on the trade itself rather than the underlying borrower.<\/p>\n\n\n\n<p style=\"font-size:16px\">This means that small businesses with weaker balance sheets can use trade finance to trade larger volumes and work with end customers that have stronger balance sheets and credit ratings.<\/p>\n\n\n\n<p style=\"font-size:16px\">The embedded risk mitigants that surround trade finance lending promote greater diversity in a trader\u2019s supplier base, leading to increased competition and efficiency in markets and supply chains.<\/p>\n\n\n\n<p style=\"font-size:16px\">Companies can further mitigate business risks by using appropriate trade finance structures.<\/p>\n\n\n\n<p style=\"font-size:16px\">Since late payments from debtors, bad debts, excess stock, and demanding creditors can have detrimental effects, businesses can use external financing or revolving credit facilities to ease this pressure by effectively financing trade flows.<\/p>\n\n\n\n<p><\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-buttons h-auto is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.tradefinanceglobal.com\/get-trade-finance\">Get Started<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n<div class=\"block-content align bg-tale rounded p-24 fs-16 h-auto wp-block-acf-block-content\"style=\"background-color: #FFFFFF;color: #002F4D;\"\n>\n    <h2>How can we help?<\/h2>\n<p>The TFG team works with the key decision-makers with over 300 banks, funds and alternative lenders globally, assisting companies in accessing trade &amp; receivables finance.<\/p>\n<p>Our international team are on hand to help you scale up to take advantage of trade opportunities. We have product specialists, from machinery experts to soybean gurus, as well as geographical specialists.<\/p>\n<p>Often the financing solution that is required can be complicated, and our job is to help you find the appropriate trade finance solutions for your business.<\/p>\n<p><a href=\"https:\/\/www.tradefinanceglobal.com\/about-us\/\" data-wpel-link=\"internal\">Read more<\/a>\u00a0about Trade Finance Global and\u00a0our global team.<\/p>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"block-faq overflow-hidden h-auto py-10\">\n  <div class=\"container w-auto\">\n    <div class=\"d-grid grid-col-1 grid-col-xs-2 mb-24\">\n      <h3 id=\"heading-trade-finance-frequently-asked-questions\" class=\"not-for-table-content fw-700 \">Trade finance frequently asked questions<\/h3>\n          <\/div>\n    <div class=\"d-grid grid-col-4 grid-col-xs-1 gap-24\">\n              <div class=\"d-flex overflow-x-auto hide-scrollbar xs-flex-direction-row flex-direction-column gap-24 list-question\">\n                      <div class=\"single-anwser active pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"How is trade finance governed and what is the UCP 600?\">\n                How is trade finance governed and what is the UCP 600?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>The UCP 600 (\u201cUniform Customs &amp; Practice for Documentary Credits\u201d) is the official publication issued by the ICC (International Chamber of Commerce) for trade finance governance.<\/p>\n<p>It is a body of rules on the issuance and use of a letter of credit and applies to 175 countries.<\/p>\n<p>The aim has been to standardise a set of rules aimed to benefit all parties during a trade finance transaction \u2013 for that reason, it is designed by industry experts rather than through legislation.<\/p>\n<p>The UCP was originally created in 1933 and has been revised repeatedly by the ICC, with the most recent UCP 600 coming into force on 1 July 2007.\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/posts\/trade-finance-governed-ucp-600\/\" data-wpel-link=\"internal\">Read more \u2192<\/a><\/p>\n<\/div>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"What is the difference between trade and export finance?\">\n                What is the difference between trade and export finance?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>Export finance specifically refers to the financing mechanisms used by exporters in cross-border transactions.<\/p>\n<p>The term trade finance is an umbrella term that includes export finance, as well as other financing mechanisms like import financing and can even be used for domestic transactions.<\/p>\n<p>Often, this will cover invoice finance, purchase order finance, off-balance sheet lending, letters of credit, and similar funding instruments.<\/p>\n<p>Trade finance is generally not well known in the market but many practitioners regard it as a way of financing trade through the use of a lender\u2019s funds.\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/posts\/difference-between-trade-and-export-finance\/\" data-wpel-link=\"internal\">Read more \u2192<\/a><\/p>\n<\/div>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"What does trade finance include?\">\n                What does trade finance include?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>Trade finance includes the following:<\/p>\n<ul>\n<li>Bonds and guarantees<\/li>\n<li>Lending facilities<\/li>\n<li>Issuing\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/\" data-wpel-link=\"internal\">letters of credit (LCs)<\/a><\/li>\n<li><a href=\"https:\/\/www.tradefinanceglobal.com\/export-finance\/\" data-wpel-link=\"internal\">Export factoring<\/a>\u00a0(companies receive funds against invoices or accounts receivable)<\/li>\n<li>Forfaiting (purchasing the receivables or traded goods from an exporter)<\/li>\n<li><a href=\"https:\/\/www.tradefinanceglobal.com\/finance-products\/receivables-factoring\/\" data-wpel-link=\"internal\">Receivables financing<\/a>,\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/invoice-finance\/factoring\/\" data-wpel-link=\"internal\">invoice factoring,<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/invoice-finance\/invoice-discounting\/\" data-wpel-link=\"internal\">invoice discounting<\/a><\/li>\n<li>Export credits (to reduce risks to funders when providing trade or\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/supply-chain-finance\/\" data-wpel-link=\"internal\">supply chain finance<\/a>)<\/li>\n<li>Insurance (during delivery and shipping, also covers currency risk and exposure)<\/li>\n<li>Supply chain finance<\/li>\n<li>Foreign exchange and\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/currency\/\" data-wpel-link=\"internal\">currency products<\/a><\/li>\n<\/ul>\n<\/div>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"What are the methods of payment for trade finance?\">\n                What are the methods of payment for trade finance?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>Cash advances<\/p>\n<p>As the least risky product for the seller, a cash advance requires payment to the exporter or seller before the goods or services have been shipped.<\/p>\n<p>Cash advances are very common with lower value orders, and help provide exporters (sellers) with the upfront cash needed to ship the goods and no risk of late or no payment.<\/p>\n<p>Letters of credit (LCs)<br \/>\nLetters of credit (LCs), also known as documentary credits, are financial, legally binding instruments, issued by banks or specialist trade finance institutions that pay the exporter on behalf of the buyer if the terms specified in the LC are fulfilled.<\/p>\n<p>An LC requires an importer and an exporter, with an issuing bank and a confirming (or advising) bank.<\/p>\n<p>The financiers and their creditworthiness are crucial for this type of trade finance: it is called credit enhancement \u2013 the issuing and confirming bank replaces the guarantee of payment from the importer and exporter.<\/p>\n<p>In this section, and in most cases, we may consider the importer as the buyer and the exporter as the seller.<\/p>\n<p>See a worked example here of how trade finance can be used to finance the purchasing of frozen fish from a supplier, to be sold on to end customers:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2018\/04\/Stock-Finance-Frozen-Fish-1024x576.jpg\" alt=\"Trade and Stock Finance\" width=\"549\" height=\"308\" \/><\/p>\n<p>Trade and Stock Finance<\/p>\n<p>Documentary collection<br \/>\nDocumentary collections differ from a Letter of Credit (read our blog post on the differences between DCs and LCs).<\/p>\n<p>In the case of DC, the exporter will request payment by presenting its shipping and collection documents to its remitting bank.<\/p>\n<p>The remitting bank then forwards these documents to the importer\u2019s bank, which then pays the exporters bank, which will credit those funds to the exporter.<\/p>\n<p>Open accounts<br \/>\nAn open account is a transaction where the importer pays the exporter 30 \u2013 90+ days after the goods have arrived from the exporter.<\/p>\n<p>This is advantageous to the importer but carries substantial risk for the exporter \u2013 it often occurs if the relationship and trust between the two parties are strong.<\/p>\n<p>Open accounts help increase competitiveness in export markets, and buyers often push for exporters and sellers to trade on open account terms.<\/p>\n<p>As a result, exporters may seek export finance to fund working capital while waiting for the payment.<\/p>\n<\/div>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"Who are the providers of trade and export finance?\">\n                Who are the providers of trade and export finance?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>Retail and commercial banks<br \/>\nSome commercial banks have specialised trade finance divisions that offer facilities to businesses.<\/p>\n<p>Commercial banks represent the majority share of financial institutions globally, although they range in size from small and niche banks to large multinational banks.<\/p>\n<p>Alternative finance and non-bank funders<br \/>\nThere are many types of financial institutions that do not use public deposits as a funding resource.<\/p>\n<p>Funding sources include crowdfunded (pooled) investment, private investment, and public market sourced capital.<\/p>\n<\/div>\n                              <a href=\"https:\/\/www.tradefinanceglobal.com\/lender-types\/\" class=\"detail-link d-hidden text-black fs-12 small-link-arrow-right text-right mr-0\">\n                  <span>Read More<\/span>\n                <\/a>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"What is the process for applying for trade finance?\">\n                What is the process for applying for trade finance?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>1. Application<br \/>\nThe initial \u2018credit\u2019 application drives the process when applying for credit.<\/p>\n<p>Lenders will often ask for information on current assets or collateral that the business owns, including debt and overdrafts, and assets that the company or directors own (such as property, equipment, or invoices).<\/p>\n<p>2. Evaluating the application<br \/>\nThe evaluation process will normally involve some kind of credit scoring process, taking into account any vulnerabilities such as the market the business is entering, the probability of default, and even the integrity and quality of management.<\/p>\n<p>3. Negotiation<br \/>\nEligible SMEs applying for trade finance can negotiate terms with lenders.<\/p>\n<p>An SME\u2019s aim with a lender is to secure finance on the most favourable terms and price.<\/p>\n<p>Some of the terms that can be negotiated can include fees, fixed charges, and interest rates.<\/p>\n<p>4. The approval process and documentation of a loan<br \/>\nTypically, the account officer who initially deals with the applicant and collects all of the documentation will do an initial credit and risk analysis.<\/p>\n<p>This then goes to a specific committee or the next level of credit authority for approval.<\/p>\n<p>If the loan is agreed upon (on a preliminary basis) it goes to the legal team to ensure that collateral can be secured\/ protected and to mitigate any risks in the case of default.<\/p>\n<\/div>\n                              <a href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance-process\/\" class=\"detail-link d-hidden text-black fs-12 small-link-arrow-right text-right mr-0\">\n                  <span>Read More<\/span>\n                <\/a>\n                          <\/div>\n                      <div class=\"single-anwser  pointer bg-anti-flash-white border-radius-12 p-24\">\n              <h4 class=\"fs-20 mb-0 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"What are the challenges for SMEs in accessing trade or export finance?\">\n                What are the challenges for SMEs in accessing trade or export finance?              <\/h4>\n              <div class=\"detail-anwser d-hidden fs-16\"><p>From the bank\u2019s perspective, as the regulation burden (i.e., Basel III) has become heavier, SMEs often don\u2019t fulfil certain criteria for banks to justify lending.<\/p>\n<p>As lending money has an associated transaction cost, it is more costly to assess and monitor loans to a smaller, riskier company where profit is less certain, relative to a larger, more profitable, and stable business.<\/p>\n<p>Banks will often ask for the following from any company when filling out an application for any type of business finance:<\/p>\n<p>Audited financial statements<br \/>\nFull business plans<br \/>\nFinancial forecasts<br \/>\nCredit reports<br \/>\nDetails and references of the directors<br \/>\nInformation on assets and liabilities<br \/>\nAs well as the cost of lending to SMEs being less profitable for banks, there is a much higher default risk and a greater chance of bankruptcies with SMEs in comparison to larger firms.<\/p>\n<p>The other challenge banks have in lending to SMEs is the lack of security and collateral an SME can provide.<\/p>\n<p>SMEs also face challenges in accessing finance from banks.<\/p>\n<p>In a recent survey by the British Business Bank, 46% of SMEs were looking to grow in the next 6 months, yet awareness of types of finance available and finding sources of finance (especially after being rejected from a bank) are major concerns amongst SMEs.<\/p>\n<p>The perceived high cost of borrowing, lengthy procedures for securing a loan and also the amount of paperwork and documentation required are often off-putting and cumbersome to SMEs.<\/p>\n<\/div>\n                          <\/div>\n                  <\/div>\n        <div class=\"col-span-3 col-span-xs-1 detail-anwser-block hide-scrollbar bg-tale rounded p-24\">\n          <h4 class=\"fs-20 fw-700 elipsise-2-line detail-question not-for-table-content\" title=\"What are the challenges for SMEs in accessing trade or export finance?\">\n            How is trade finance governed and what is the UCP 600?          <\/h4>\n          <div class=\"detail-anwser fs-16\"><p>The UCP 600 (\u201cUniform Customs &amp; Practice for Documentary Credits\u201d) is the official publication issued by the ICC (International Chamber of Commerce) for trade finance governance.<\/p>\n<p>It is a body of rules on the issuance and use of a letter of credit and applies to 175 countries.<\/p>\n<p>The aim has been to standardise a set of rules aimed to benefit all parties during a trade finance transaction \u2013 for that reason, it is designed by industry experts rather than through legislation.<\/p>\n<p>The UCP was originally created in 1933 and has been revised repeatedly by the ICC, with the most recent UCP 600 coming into force on 1 July 2007.\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/posts\/trade-finance-governed-ucp-600\/\" data-wpel-link=\"internal\">Read more \u2192<\/a><\/p>\n<\/div>\n          <a href=\"\" class=\"detail-link text-black fs-12 small-link-arrow-right text-right mr-0 d-hidden\">\n            <span><\/span>\n          <\/a>\n        <\/div>\n          <\/div>\n  <\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"learnmoreabout\">Want to learn more about trade finance?<\/h2>\n\n\n\n<p class=\"bg-anti-flash-white rounded p-24 h-auto\" style=\"font-size:16px\">Look no further! We\u2019ve put together our feature trade finance insights, research, and articles, and you can catch the latest thought leadership from the TFG, listen to podcasts and digest the latest in international trade right here.<\/p>\n\n\n\n<p><\/p>\n\n\n\n\n\n<p><\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<section class=\"full-width block-slider_with_text py-10\" data-block=\"slider_with_text\" data-theme=\"dark\">\n  <div class=\"container overflow-hidden\">\n    <div class=\"slider-text-block\">\n      <div class=\"slider-text-block-container\">\n        <h2 id=\"heading-explore-our-financing-solutions\" class=\"elipsise-2-line word-wrap not-for-table-content\">\n          Explore our financing solutions        <\/h2>\n        <span class=\"block-subtitle elipsise-2-line word-wrap\">How TFG are helping to finance tomorrow&#8217;s trade<\/span>\n                  <a href=\"\/get-trade-finance\/\" class=\"button-standart button-standart-blue\">\n            <span>Find out more<\/span>\n          <\/a>\n              <\/div>\n    <\/div>\n    <div class=\"swiper-container\" data-slides-desktop=\"2\" data-slides-tablet=\"1.5\" data-slides-mobile=\"1\" data-space-between=\"32\">\n      <div class=\"swiper-wrapper\">\n                  <div class=\"swiper-slide\">\n            <div class=\"post-slide post-slide-small\">\n              <div class=\"post-information\">\n                <div class=\"post-card-meta\">\n                  <div class=\"meta-category\">\n                    Case Studies                  <\/div>\n                <\/div>\n                <div class=\"post-title\">\n                  <h4>\n                    <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/metals-trader\/\" rel=\"bookmark\" class=\"elipsise-2-line\">\n                      Metals trader &#8211; A case study                    <\/a>\n                  <\/h4>\n                <\/div>\n              <\/div>\n                              <div class=\"post-image\">\n                  <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/metals-trader\/\" rel=\"bookmark\">\n                    <img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Metals-trader-\u2013-A-case-study1-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/>                  <\/a>\n                <\/div>\n                          <\/div>\n          <\/div>           <div class=\"swiper-slide\">\n            <div class=\"post-slide post-slide-small\">\n              <div class=\"post-information\">\n                <div class=\"post-card-meta\">\n                  <div class=\"meta-category\">\n                    Case Studies                  <\/div>\n                <\/div>\n                <div class=\"post-title\">\n                  <h4>\n                    <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/soft-commodities-trader\/\" rel=\"bookmark\" class=\"elipsise-2-line\">\n                      Soft commodities trader &#8211; A case study                    <\/a>\n                  <\/h4>\n                <\/div>\n              <\/div>\n                              <div class=\"post-image\">\n                  <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/soft-commodities-trader\/\" rel=\"bookmark\">\n                    <img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/08\/Soft-commodities-trader-\u2013-A-case-study2-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/>                  <\/a>\n                <\/div>\n                          <\/div>\n          <\/div>           <div class=\"swiper-slide\">\n            <div class=\"post-slide post-slide-small\">\n              <div class=\"post-information\">\n                <div class=\"post-card-meta\">\n                  <div class=\"meta-category\">\n                    Case Studies                  <\/div>\n                <\/div>\n                <div class=\"post-title\">\n                  <h4>\n                    <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/food-distribution-company\/\" rel=\"bookmark\" class=\"elipsise-2-line\">\n                      Food distribution company &#8211; A case study                    <\/a>\n                  <\/h4>\n                <\/div>\n              <\/div>\n                              <div class=\"post-image\">\n                  <a href=\"https:\/\/www.tradefinanceglobal.com\/case-studies\/food-distribution-company\/\" rel=\"bookmark\">\n         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class=\"attachment-large size-large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Hardware-distribution-company-in-e-commerce-\u2013-A-case-study.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Hardware-distribution-company-in-e-commerce-\u2013-A-case-study-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Hardware-distribution-company-in-e-commerce-\u2013-A-case-study-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Hardware-distribution-company-in-e-commerce-\u2013-A-case-study-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Hardware-distribution-company-in-e-commerce-\u2013-A-case-study-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Hardware-distribution-company-in-e-commerce-\u2013-A-case-study-414x168.jpg 414w, 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        <\/li>\n                  <\/ul>\n            <select class=\"topics-sort d-hidden\">\n        <option value=\"title-asc\">A-Z<\/option>\n        <option value=\"date-desc\" selected>Latest<\/option>\n      <\/select>\n      <div class=\"border-light-blue bg-white fs-16 fw-700 pointer bordered dark:bg-maastricht-blue position-absolute rounded-md sorting-dropdown px-16 py-10\">\n        <span class=\"display-value d-block\">Latest<\/span>\n        <div class=\"border-light-blue bordered options-to-select overflow-hidden rounded-md w-100 d-hidden\">\n          <span class=\"d-block py-10 px-16 pointer single-option\"\n          data-value=\"title-asc\">A-Z<\/span>\n          <span class=\"d-block py-10 px-16 pointer single-option\" data-value=\"date-desc\">Latest<\/span>\n        <\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"block-wrapper clearfix overflow-hidden max-w-100\">\n    <\/div>\n\n    <div class=\"bottom-buttons d-flex clearfix container w-auto\">\n      <a href=\"\" class=\"custom-link button-standart button-standart-blue\">\n        <span><\/span>\n      <\/a>\n    <\/div>\n  <\/div>\n<\/section>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is trade finance? Trade finance is the financing of goods or services in a trade transaction, at any point from a supplier all the way through to the end\u2026 <a href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance\/\" class=\"read-more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":74,"featured_media":110530,"parent":0,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false,"footnotes":""},"categories":[11038,32],"class_list":["post-8813","page","type-page","status-publish","has-post-thumbnail","hentry","category-hub","category-trade-finance"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trade Finance Explained: 2025 Update<\/title>\n<meta name=\"description\" content=\"UPDATED 2025 | Trade Finance - Learn how to release working capital from your trade cycles. 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