One minute guide. What is it? Supply chain finance (or SCF) refers to a funding program implemented by a buyer to provide early payments to his suppliers. It typically works like this: The buyer teams up with one or banks, who
Five minute guide. What does Basel 3 say about trade finance? Basel 3 requires banks to keep high levels of capital against trade finance including letters of credit that they issue. Many banks are reducing or pulling out of trade finance services as a result. This
One minute guide. What is it? A letter of credit ("LC") is a flexible and internationally accepted form of financial guarantee. What it does depends upon what it says. But with that caveat, it is commonly organised to support the trade in goods.
One minute guide. What is it? Documentary collection is a system to help exporters. It is used by exporters: to ensure that control of the goods is retained until the exporter is sure that the buyer will pay, and correspondingly,
One minute guide. What is it? Many exporters ask their buyers to arrange a letter of credit. This is a payment guarantee from the buyer's bank. It is intended to ensure that the exporter can ship the goods and be confident that the buyer will pay for them