![]() ![]() Within this context, the guide outlines opportunities to help SMEs recover from the impacts of the COVID-19 pandemic and respond to new orders. The guide recognizes the impact of the COVID-19 pandemic on SME access to trade and export finance. The guide highlights product, manufacturing, transport, and currency risks and challenges, and outlines how to access trade finance from different lending sources. The guide provides an overview of methods of payment, including cash advances, letters of credit, documentary collections and open accounts, and describes the suitability of each method for various business requirements. These include trade credit, cash advances, purchase order finance, receivables discounting, term loans, and other types of business finance such as equity finance, leasing and asset-backed finance, and asset finance. The guide titled, ‘Trade Finance Explained: An SME Guide for Importers and Exporters,’ describes the types of trade finance structures available to SME importers and exporters. Trade finance, also known as supply chain finance and import and export finance, is an umbrella term that includes a variety of financial instruments that importers and exporters can utilize. The guide defines trade finance as “the financing of goods or services in a trade or transaction, from a supplier through to the end buyer.” Trade finance accounts for 3% of global trade and is worth approximately USD 3 trillion annually. ![]() The guide aims to help small and medium-sized enterprise (SMEs) exporters and importers learn about and access finance for trade. The International Trade Centre (ITC) and partners launched the SME Trade Finance Guide at the SME Finance Forum. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |