Financing in foreign trade

the financing in foreign trade is a special form of sales financing that deals with the procurement of capital for a period of time that begins with the preparation of services in the exporting country at the earliest and ends at the latest when payment is received from the importer's buyer. It includes the scheduling of payment transactions and the transfer of financial foreign trade risks.

Financing in foreign trade is possible in two forms:

Import financing

Import financing is the procurement of outside capital to process import transactions. It includes z. B. the period from the opening of the letter of credit to the redemption of the documents during or after the end of the transport.

Export finance

the Export finance is the procurement of outside capital to carry out export transactions. It begins with the manufacture or purchase of the goods to be exported and includes the financing of the transport duration and the payment term.

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