Trade finance describes the way in which banks help facilitate their customers’ international trade by removing the credit risk inherent in import and export contracts. Follow this pathway to gain a comprehensive understanding of how this market operates.
Watch all the videos and pass the test to obtain a certificate showing your completion of this Pathway. Certificates can be shared directly to your LinkedIn profile and social media accounts.
14 video modules • 1 hour 33 minutes
With global trade worth an estimated $18 trillion, there is no question as to why financiers are attracted to this sector. To fully enjoy the benefits of trade finance, it is important to understand the basic principles that underpin it. Aidan discusses the basics of trade finance by expanding on key principles such as export finance, commodity finance and structured & commodity trade.
Aidan Applegarth • 08:34
In Aidan's previous video, he clarified some terms closely related to trade finance to provide a better understanding of the basics. In this video, Aidan discusses the key benefits of trade finance, namely its transparent and self-liquidating transactions, its earnings potential, and cross-sell potential.
Aidan Applegarth • 06:15
Within Trade Finance there is an inherent conflict between buyers and sellers in different locations. In this video, Aidan explores how effective risk management affords the transparency and ‘hands on’ engagement that facilitates diligent commercial lending.
Aidan Applegarth • 04:34
Following on from Aidan's video on the risk ladder, he continues his series on Trade Finance by looking at how the documentary Letter of Credit works and how its role is similar to that of the Documentary Collection.
Aidan Applegarth • 05:52
As explained in the previous video, once any risks are mitigated for the seller, he can raise finance against his expected sales receivable, whilst the buyer can raise finance against the security of the underlying asset. In this video we’ll see how trade working capital is enabled by deploying these solutions.
Aidan Applegarth • 04:56
Aidan outlines the significance of credit support in trade finance. He critiques traditional credit analysis, explains the components that makeup credit analysis and outlines the value of focusing on these components.
Aidan Applegarth • 09:58
Money laundering and financial crime risk in trade finance is a problem that the industry has struggled to solve. Iain explains the complexity of this issue by explaining what we know, emerging threats and what bank policies exist to address this risk in trade finance.
Iain Hoggarth • 16:54