TRADE FINANCE GUIDE
NON-STRUCTURED FUNDED TRADE FINANCE Non-structured funded products are simple trade finance tools focused on providing funding/ liquidity to either the buyer or seller in the transaction (or both). In some cases, the seller will need funding in order to produce or ship the goods being exported. Concurrently, the buyer may also need funding in order to pay for the goods being purchased. The products below address this issue, allowing financial institutions to fund these transactions. Some products are focused on supporting sellers by accelerating cash flows from receivables generated by sales (factoring, invoice discounting, the seller side of supply chain finance, forfaiting), whilst others are focused on supporting buyers elongating their cash flow cycles by providing them with liquidity to settle their purchases while they wait to generate funds from their own onward sales (LC refinancing, the buyer side of supply chain finance).
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