Trade finance is a short-term credit availed by a bank to their borrower for importing and exporting activities. Trade finance is used when financing is required by buyers and sellers to assist them with the trade cycle funding gap. Trade finance helps settle the conflicting needs of the exporter and the importer. An exporter needs to mitigate the payment risk from the importer and it would be in their benefit to accelerate the receivables. On the other hand the importer wants to mitigate the supply risk from the exporter and it would be in their benefit to receive extended credit on their payment. It includes various kinds of loans, advances and facilities required for imports and exports deals.
Payment Gateway in International Trade: