Issue 16 . Aug 2022
This guide by Trade Finance Global provides an overview of trade finance for SMEs, explaining its necessity, benefits, and types. It details various trade finance products such as trade credit, cash advances, purchase order finance, receivables discounting, and term loans, along with payment methods like cash advances, letters of credit, documentary collections, and open accounts. The guide also covers pre-shipment, post-shipment, and supply chain finance, addressing product, manufacturing, transport, and currency risks. It explains how to secure trade finance, outlining the application process, evaluation, negotiation, and approval stages. The guide also discusses different types of trade finance lenders, including corporate banks, alternative finance providers, and development finance institutions. Lastly, it highlights the importance of digitisation in trade finance and the role of global standards and collaboration in enabling digital trade.
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