• trade-finance1

    TRADE FINANCE

    The term ‘Trade Finance’ is basically related to ‘domestic’ as well as ‘international’ Trade transactions. Trade Finance refers to finance for Trade.

    For a trade transaction, there should be a seller to sell the goods or services and a buyer who will buy the goods or use the services. Various intermediaries such as banks / financial institutions can facilitate this trade transaction by financing the trade.

    Though international trade has been in existence for centuries, trade finance was subsequently developed as a means of facilitating it further. The widespread use of trade finance is one of the factors that have contributed to the enormous growth of international trade in recent decades.

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