Trade financing mainly includes the following types:
1. Pre-shipmentFinance: Before the goods are shipped, exporters can apply for loans from banks in this way, and obtain funds in advance to purchase raw materials and organize production.
2. Pre-export financing: This financing method is usually provided 1-3 months before the shipment of goods to support the exporter's capital demand in the process of production, procurement and transportation.
3.ImportFinance: Importers can apply for short-term loans from banks when they pay for the goods, so as to obtain funds before the goods arrive and reduce the occupation of funds.
4. Export financing: After the goods are shipped, exporters can apply for loans from banks in this way, so as to obtain funds while waiting for payment from overseas customers.
5. Factoring: Factoring is a financing method based on accounts receivable. After delivery, the exporter can transfer the accounts receivable to the factor to get cash immediately.
Trade financing can help enterprises solve the financial problems in international trade, reduce financial risks and improve their competitiveness. At the same time, banks and other financial institutions can also obtain stable customer resources and income by providing trade financing services.