Trade Finance
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.
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14 videos • 1 hour 38 minutes
Trade Finance Introduction
Trade Finance represents products that facilitate international trade. In this introductory video into the topic Andy breaks the sector down into its constituent parts.
Andy Sweeney • 09:55
Trade Finance Jargon Buster
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
Key Benefits of Trade Finance
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
Risk Mitigation in Trade Finance
Andy covers the most common risks involved in a transaction in Trade Finance as well as other considerations.
Andy Sweeney • 04:44
Trade Finance as a Risk Management Tool
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
Legal Documentation in Trade Finance
In Trade Finance the documentation is the same regardless of the transaction size. In this video, Andy explains the different types of documentation required for a transaction.
Andy Sweeney • 04:11
Letters of Credit in Trade Finance
In this video Andy describes letters of credit - what they are, their functions and the different format types.
Andy Sweeney • 03:12
Investing in Trade Finance
Many funds struggle to access the Trade Finance market, typically because of its complexity. In this video Andy outlines the structures available for investors to gain access the market.
Andy Sweeney • 05:06
Letters of Credit Vs Documentary Collection
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
Trade Finance as Working Capital
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
Contextualising the Role of Trade Finance
Trade is taking centre stage in world affairs, and with good reason! In this video, Aidan provides an explanation of what will be covered in this series on Trade Finance.
Aidan Applegarth • 05:07
Traditional Credit Analysis Vs Trade Finance
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
Key Risks in Trade Finance
In this video, Aidan breaks down the credit risk focus of trade finance, and the importance of their management. This includes settlement risk, performance risk, and logistics risk.
Aidan Applegarth • 09:25
Mitigating Trade-Based Money Laundering
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
