Trade financing
Trade financing – a complex of bank services aimed at minimizing risks the participants of foreign trade activity face with - importers and exporters of the goods, with simultaneous access provision to international capital markets. Such risks include: commercial (delay in delivery and payments, delivery of goods of poor quality, non-fulfillment of contract obligations etc.), political (introduction of prohibitive regulatory measures by certain states, setting a moratorium), currency (national currency rate change) and other. Risks insurance shall be provided by usage of standardized bank instruments.
Instruments of trade financing:
1. Documentary letters of credit
2. Bank guarantees
3. Factoring
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