Traditional Credit Analysis Vs Trade Finance

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.
Overview

In this video, Aidan outlines the traditional credit risk review of balance sheet analysis and identifies the flaws associated with this, and then introduces the trade financing solutions, how they differ to general corporate lending and the reason for their relatively low loss-default rate.

Key learning objectives:

  • Identify the traditional credit risk analysis used by credit managers

  • Discuss the flaws associated with traditional credit analysis

  • Explain the focus of trade finances’ credit analysis, and its benefits

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Summary
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Expert
Aidan Applegarth

Aidan Applegarth

Aidan spent some 30 years building up Trade and Commodity Finance (TCF) businesses for banks in the UK, Europe and Asia. He is now a consultant providing training and practical guidance to banks and other lenders wishing to develop a TCF proposition and also advises a number of Trade Finance funds on Credit and Operational Risk.

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