Trade Finance

This article describe about Trade Finance, which has been reviewing the global trade market since 1983. It includes such activities as lending, issuing letters of credit, factoring, export credit and insurance. It depends on verifiable and secure tracking of physical risks and events in the chain between exporter and importer. It is used when financing is required by buyers and sellers to assist them with the trade cycle funding gap. The function of trade finance is to act as a third-party to remove the payment risk and the supply risk, whilst providing the exporter with accelerated receivables and the importer with extended credit.