Trade Finance

Definition

Trade Finance. It is an umbrella term used by the finance providers to describe their organization lines, organizational units, and activities.

Trade finance is used as a generic term for a range of traditional trade financial instruments and it is evolving in procurement finance. It is the financing of international or domestic trade.

It can include any of the following Financial Products:

• letters of credit,
• guarantees,
• collections,
• bills of exchange,
• factoring
• forfeiting
• or export credit.