Trade Finance Solutions
TRADE FINANCING FOR IMPORTS, EXPORTS AND COMMODITIES
The global shortage of trade finance is devastating small businesses worldwide, with 60% of SMBs can’t get financing. If you’ve been turned down elsewhere, we can help provide the financing you need.
Trade Finance Solutions For International Trade
- Import Financing
- Export Financing
- Financial Instrument Monetization
- Letters of Credit
- Bank Guarantees
- Commodity Financing
- Invoice Factoring
- Open Accounts
- Trade Finance
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Trade Finance For Imports, Exports And Commodities
Trade Finance is important to every business involved in cross-border trade. With a worldwide shortage of trade finance impacting small businesses and capital markets around the world, finding trade finance to fund your deals and provide the due diligence services you need is now more important than ever.
Global Trade Funding provides the kind of innovative trade finance solutions your business needs, each structured to limit your risk and make your businesses more profitable and we can do it today. We are committed to seeing our clients through this shortage of financing by ensuring they always have the trade funding they need.
We bring decades of international trade finance expertise to bear on every transaction, providing real-world trade finance solutions with an array of funding options to individuals, companies, governments and NGOs throughout the world. We arrange trade financing through our strategic partners and a network of individual, corporate, private and institutional lenders, including investment banks, merchant banks, private banks, trusts, and other lending institutions. Our team of experienced professionals works seamlessly to make doing business internationally easier and more profitable by providing the trade finance solutions your business needs.
Unless you’re prepared to pay cash in advance for goods you are importing, Import Financing provides benefits beyond just financing. Import Financing services include deal structuring and due diligence advisory to ensure the deal is structured for your protection. When combined with a range of trade finance options from bank guarantees and letters of credit to factoring, we deliver lower-risk solutions that will improve your profits.
As an exporter, you can’t afford to wait until your buyer receives the goods you’ve shipped to receive payment and you certainly can’t wait until the goods are re-sold. But, if you could offer terms to your buyers you would rack up more sales. We can bridge that gap by structuring Export Financing that will protect you throughout the deal, provide needed cash flow before shipment, and extend favorable terms to your buyer.
Commodity Financing is a specialized area of trade finance used for funding the production, transportation and sale of commodities. Commodity Financing provides primarily short-term financing facilities to a range of principals in the commodities business, including producers, commodity traders and major international trading operations, commodity importers and commodity exporters.
Trade Finance Learning Center
With more than 80% of the world’s trade depending on trade finance it is an essential segment of the financial services sector. It is also one of the least understood of the financial services. One of the things that undermine people’s understanding of trade finance is the absence of a single vocabulary. Do a search for the definition of import financing, for instance, and the top 20 results will provide 20 different definitions. We are creating a learning center with content that will help improve understanding of trade finance and its various component segments. Each of the below tabs provides the factual information you need to make good business decisions, beginning with important trade finance definitions.
Accounts Receivable Factoring
Accounts Receivable Factoring is a method of Trade Financing where a company sells their accounts receivable in exchange for working capital. The purchaser of the receivables relies on the creditworthiness of the customers who owe the invoices, not the subject company.
Asset Based Lending
Asset Based Lending is a method of Trade Financing that allows a business to leverage company assets as collateral for a loan. Asset-based loans are an alternative to more traditional lending which is generally characterized as a higher risk which requires higher interest rates.
Advance Against Documents
Advances Against Documents are loans made solely based on the security of the documents covering the shipment.
Bill of Lading
Bill of Lading is a document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified price. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods.
Cash Against Documents
Cash Against Documents is the payment for goods in which a commission house or other intermediary transfers title documents to the buyer upon payment in cash.
Cash in Advance
Payment for goods in which the price is paid in full before shipment is made. This method is usually used only for small purchases or when the goods are built to order.
Cash with Order
Cash with Order is the payment for goods whereby the buyer pays when ordering and in which the transaction is binding on both parties.
Clean Bill of Lading
Clean Bill of Lading is a receipt for goods issued by a carrier that indicates that the goods were received in “apparent good order and condition,” without damage or other irregularity.
Confirmed Letter of Credit
A Confirmed Letter of Credit is a Letter of Credit issued by a foreign bank, which has been confirmed as valid by a domestic bank. An exporter whose form of payment is a Confirmed Letter of Credit is assured of payment by the domestic bank who confirmed the Letter of Credit even if the foreign buyer or the foreign bank defaults.
Consignment is a delivery of merchandise from an exporter (the consignor) to an agent (the consignee) subject to an agreement by the agent that the agent will sell the merchandise for the benefit of the exporter, subject to certain limitations, like a minimum price. The exporter (consignor) retains ownership of and title to the goods until the agent (consignee) has sold them. Upon the sale of the goods, the agent typically retains a commission and remits the remaining net proceeds to the exporter.
A Cross-Border Sale refers to any sale that is made between a firm in one country and a firm located in a different country.
Date Draft is a draft that matures a specified number of days after the date the draft is issued, without regard to the date of acceptance.
Deferred Payment Credit
Deferred Payment Credit is a type of Letter of Credit which provides for payment some date and time after presentation of shipping documents by the exporter.
Draft (or Bill of Exchange)
Draft (or Bill of Exchange) is an unconditional written order from one party (the drawer) to another party (the drawee), which directs the drawee to pay a specified amount to a named drawer at a fixed or determinable future date.
Factoring is the selling of a company’s invoices and accounts receivable at a discount. The lender assumes the credit risk of the debtor and receives the cash when the debtor settles the account.
Foul Bill of Lading
Foul Bill of Lading is a receipt for goods issued by a carrier with an indication that the goods were damaged when received.
Inland Bill of Lading
Inland Bill of Lading is a bill of lading which is used in transporting goods overland to the exporter’s international carrier. Although a Through Bill of Lading can sometimes be used, it is usually necessary to prepare both an Inland Bill of Lading and an Ocean Bill of Lading for export shipments.
Invoice Factoring is one of the most common methods of trade financing. Your company sells their invoices to a factor in exchange for immediate liquidity. The factor who purchases the invoices relies on the creditworthiness of the customers who owe the invoices, not the subject company.
Irrevocable Letter of Credit
Irrevocable Letter of Credit is a Letter of Credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee.
Letter of Credit
Letter of Credit or LC is the most common trade finance solution in the world. A Letter of Credit is a document issued by a bank for the benefit of a seller or exporter, which authorizes the seller to draw a specified amount of money, under specified terms, usually the receipt by the issuing bank of certain documents within a given time.
Ocean Bill of Lading
Ocean Bill of Lading is a bill of lading indicating that the exporter consigns a shipment to an international carrier for transportation to a specified foreign market. Unlike an inland bill of lading, the ocean bill of lading also serves as a collection document.
On Board Bill of Lading
On Board Bill of Lading is a bill of lading in which a carrier certifies that goods have been placed on board a certain vessel.
Open Account is a trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment. The obvious risk this method poses to the supplier makes it essential that the buyer’s integrity be unquestionable.
Pro forma Invoice
Pro forma Invoice is an invoice provided by a supplier prior to the shipment of merchandise, which informs the buyer of the kinds, nature and quantities of goods to be shipped along with their value, and other important specifications such as weight and size.
Revocable Letter of Credit
Revocable Letter of Credit is a Letter of Credit that can be canceled or altered by a buyer after it has been issued by the buyer’s bank.
Sight Draft or SD is a draft that is payable upon presentation to the drawee.
Structured Trade Finance
Structured Trade Finance is cross-border trade finance in emerging markets where the intention is that the loan gets repaid by the liquidation of a flow of commodities.
Straight Bill of Lading
Straight Bill of Lading is a nonnegotiable bill of lading in which the goods are consigned directly to a named consignee.
Through Bill of Lading
Through Bill of Lading is a single bill of lading converting both the domestic and international carriage of an export shipment. An Air Waybill, for instance, is essentially a Through Bill of Lading used for air shipments. Ocean shipments, on the other hand, usually require two separate documents, an inland bill of lading for domestic carriage and an ocean bill of lading for international carriage. Through Bills of Lading are insufficient for ocean shipments.
Trade Credit Insurance
Trade Credit Insurance is a risk management product offered to business entities wishing to protect their balance sheet assets from loss due to credit risks such as protracted default, insolvency, and bankruptcy. Trade Credit Insurance often includes a component of political risk insurance, which ensures the risk of non-payment by foreign buyers due to currency issues, political unrest, expropriation, etc.
Trust Receipt is a release of merchandise by a bank to a buyer in which the bank retains title to the merchandise. The buyer, who obtains the goods for manufacturing or sales purposes, is obligated to maintain the goods (or the proceeds from their sale) distinct from the remainder of his or her assets and to hold them ready for repossession by the bank.
Global Reserve Currency May No Longer Be US DollarThe issue of when a global reserve currency begins or ends is not an exact science. There are no press releases
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