Trade Finance

Trade Finance

Glossary
Banking

Trade Finance

Trade finance refers to a wide variety of tried and tested, secure, collateralised, self-liquidating financial instruments provided by banks and specialist trade finance providers for domestic and international trade throughout the length of the value chain: from sellers/exporters, to intermediaries and buyers/importers. Letters of credit, forfaiting, structured commodity finance, factoring/discounting, supplier/supply-chain finance are all forms of trade finance.

Related terms