International Trade and Inherent Risks
Need for Trade Finance
Players and stake holders
Elements of Trade Finance
Trade Financing Agencies
TRADE FINANCE – An Introduction
The nature of relationship between the importer and
exporter is critical to understanding the methods of
import-export financing utilized in industry.
Role of Trade Finance in International Trade
Risks in International Trade
International trade is, in principle, not different from
domestic trade as the motivation and the behavior of
parties involved in a trade do not change fundamentally
regardless of whether trade is across a border or not.
TRADE FINANCE - DEFINITION
Basically related to 'Domestic as well as
International Trade Transaction'.
It relates to the movement, purchase and/or sale of
goods or services and 'know-how‘.
Evolution of Trade Finance
How Trade Finance works?
TRADE FINANCE - Need
Strengthen supplier relationships
secure supplies of key materials
standardizing or extend payment terms
Address funding and risk mitigation needs
via tailored on and off balance sheet financing solutions in the open-
account trade environment
Improve working capital efficiency
through accelerated cash flows generated by receiving early payments
on a true-sale basis
Strategically manage increasing sales volumes and internal credit limits
against key buyers
Gain visibility into transactions with real-time or scheduled reporting
utilizing our proprietary platform
History of Inco Terms
Inco Terms 2010
Sea and Inland Waterway
Allocation of costs to buyer/seller
Elimination / Replacement of terms
First published in 1936, the Incoterms rules have been
periodically updated, with the eighth version—
Incoterms'—having been published on January 1, 2011.
"Incoterms" is a registered trademark of the ICC.
Key Business Principles
Definition of Trade Finance
Trade Finance and International Trade
Trade Finance and Financial sector
Financial crisis and Trade Finance