Trade Finance Solutions

Overview

Trade finance is the set of financial tools that helps a buyer and a seller who do not know each other well complete a transaction. It can cover payment security, short-term funding, and protection against non-performance. Which tool fits depends on the goods, the countries involved, the parties, and the payment terms agreed.

How it generally works

1. The parties agree the commercial terms: goods, price, delivery, and payment method.
2. The business describes its need, such as payment security, working capital, or a guarantee.
3. The suitable instrument or facility is identified and its conditions are reviewed.
4. Documents are prepared, checked, and presented as the arrangement requires.

Potential business use cases

• An importer who needs to give an overseas supplier confidence of payment.
• An exporter who wants payment risk reduced before shipping.
• A trader whose cash is tied up between paying suppliers and being paid by buyers.

General documentation

Requirements vary by transaction, country and institution. Commonly requested items include:

• Company registration and identification documents
• Sales contract, purchase order, or proforma invoice
• Details of the buyer, seller, and the goods
• Shipping and transport documents, where relevant
• Recent financial information, if a facility is being considered

Important considerations

• Every instrument has costs, conditions, and documentary requirements.
• Approval and terms depend on the decision of the bank or financier involved, not on us.
• Regulations on foreign exchange, import and export differ by country.

FAQs