Trade Finance
/ˈtreɪd ˈfaɪnæns/
Definitions
- (n.) The allocation of capital and credit instruments facilitating international and domestic commercial transactions and exports.
Banks often provide trade finance to exporters to mitigate payment risks.
- (n.) Legal mechanisms and instruments used to secure payment and delivery in commercial trade, including letters of credit and documentary collections.
Letters of credit are common tools in trade finance to ensure secure transactions between parties.
Forms
- trade finance
Related terms
See also
Commentary
Trade finance encompasses financial and legal instruments designed to mitigate risk and ensure smooth transaction flows in commercial trading, often involving cross-border complexities.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.