Accounts Receivable Finance | Banker's Acceptance | Collection Drafts | Consignment | Countertrade | Factoring | Forfaiting | Inventory Finance | Letter of Credit (L/C) | Open Account | Prepayment | Short-Term Bank Loan (Refinance) | Introduction
|  | | In any international trade transaction, credit is provided by either the supplier (exporter), the buyer (importer), one or more financial institutions, or any combination of these.
The supplier may have sufficient cash flow to fund the entire trade cycle, beginning with the production of the product until payment is eventually made by the buyer. This form of credit is known as supplier credit. In some cases, the exporter may require bank financing to augment its cash flow. On the other hand, the supplier may not desire to provide financing, in which case the buyer will have to finance the transaction himself, either internally or externally, through his bank. Banks on both sides of the transaction can thus play an integral part in trade financing. |
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