How does a trade finance transaction progress?

It is important to understand the complexities in a trade or structured finance lend when compared to other structures of facility. There are specific elements required when compared to simple cash flow lending or receivables type finance . This is because the trade terms and cycles along with the underlying products have to be understood. It is also typical that there will be cross-jurisdictional trade. In actual fact, the credit process amongst many types of facilities follows a similar process to the one outlined below.

What does a due diligence (DD) process look like in a trade finance transaction?

When presenting a company to a funder, it is important to understand and outline the trade along with the company history. This will include the cash flows, management, structure and direction. This is so that it can be presented to a funder in the way that they are comfortable with. After presenting the information to the funder, an initial call or meeting may then be set up with a financier, so that they can understand the financing flows and product cycles in more detail.

What is the trade finance process?

Articles

What is the trade finance process?

By James Sinclair

James Sinclair is the Marketing Manager at Trade Finance Global.

Last updated on 13 Dec 2022

23 Jan 2017 3 min reading time

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What is the trade finance process?

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