When exporting and importing you have a number of challenges to contend with on a frequent basis and finance is just one of those challenges. Trade finance is not one solution, but a number of services that relate to importing and exporting and help to overcome the financial problems of trading overseas.
There are a number of trade finance solutions and these include; debt collection overseas, making upfront payments, credit control facilities and supplying letters of credit. These type of solutions help with cash flow when trading abroad. These solutions are also designed to help with the unique risks of trading abroad. Businesses can be much more exposed to late payments of bad debt.
On the other side of the coin many businesses may need the finance to purchase stock that needs to be imported and there are solutions that can also solve this problem.
There are a number of companies that specialise in this area including the following: