Issue 07 . Sep 2020
This guide, jointly produced by Trade Finance Global (TFG) and the International Trade & Forfaiting Association (ITFA), covers various trade finance products, both funded and unfunded, including Letters of Credit, Standby Letters of Credit, Credit Insurance, Factoring, Invoice Discounting, and Supply Chain Finance. The guide also addresses the associated risks of trade finance, such as country, corporate, fraud, and transport risks. It emphasises the importance of mitigating these risks to facilitate international trade. The guide discusses structured funded trade finance tools like Pre-Export Finance, Pre-Payment Finance, Tolling, Inventory Finance, and Borrowing Base Facilities, which provide funding and credit to trade participants. It aims to demystify trade finance by detailing its operational framework, legal underpinnings, and practical applications. It serves as a valuable resource for navigating the complexities of international trade and leveraging trade finance products to bridge working capital gaps and mitigate risks.
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