Trade financing is short-term financing or credit provided by banks related to import and export trade settlement and importers or exporters. In the process of increasing the cash flow of financing trade-oriented enterprises through various trade means and financial instruments, it is used to make full use of enterprises in the trade process, so as to trade with small enterprises with dignity. In international trade, standardized financial instruments play an important role in enterprise financing. Trade financing is associated with international settlement. First of all, how the first international settlement and trade financing of international settlement came into being has caused a problem from the beginning: who will help importers and exporters complete the creditor-debtor relationship? In what way? The answers are, of course, banks, remittances, collections and letters of credit, which in turn lead to international settlement. Settlement of debts paid by the Bank for International Settlements through international currency. The comparative characteristics of domestic and international settlement business are: different currencies and different laws can follow the scope of activities of different currencies. The development of international settlement has also changed, from cash settlement to bill settlement and settlement through direct settlement banks. International settlement is subdivided into remittance, collection and letter of credit. Divided into prepayment and remittance delivery. It is divided into D/P, D/A and other aspects. All letters of credit are divided into sight letters of credit, forward letters of credit and fake forward letters of credit $ A8B5 @ 7N: P Second, the financing needs of the three major payment methods of importers and exporters, together with bank financing, will generate international trade financing. This is a complicated process, and pregnancy technology brings benefits as well as procedural risks. In this process, people engaged in international trade and finance must understand and master. Financial intermediaries and international trade financing banks around the world provide importers and exporters with all aspects of international trade settlement facilitation. 1, financing demand import reflection: a. After signing an import and export trade contract with the exporting country, the bank can charge me the card opening fee for free? Willing to sell the goods after both parties pay. In the meantime, can banks raise funds easily? C. How can I hand over the header file to the customs without documents after the goods arrive? 2. The financing needs of export enterprises reflect: 1. After receiving the letter of credit issued to foreign importers, there is not enough money to sort out the flow of goods. Can the bank help you? B, how to ship the goods in the future, we must pay immediately to improve liquidity? C. Long-term loan, discount. Is our bank willing to do this? D, in the case of acceptance or collection under the letter of credit, how to restore the payment guarantee and obtain financing? Deep-seated demand and export customers include risk prevention of importers, risks of importing countries, exchange rates, expanding overseas markets and customers, and some even need professional advice and suggestions on international trade settlement. III. Trade financing banks can provide various products to provide trade financing. According to import and export trade, they can be divided into import and export trade financing and trade financing, and according to bilateral trade settlement, they can be divided into credit and non-credit trade financing letters of credit. Export financing of the Fund: pre-shipment financing and ship financing. Trade financing products provided to importers include: opening letters of credit, import bills of exchange and delivery guarantee. Export financing activities of Land Bank can be carried out, including: packaged loans and export financing, bill discounting, export invoice financing, export credit insurance, export bill factoring and forfaiting financing. 1. Import bill refers to that the bank receives the letter of credit, provides relevant documents under the project, imports the receipt of collection or remittance from the customer, and the importer provides the short-term amount and short-term financing under the letter of credit for payment, collection or remittance. The conditions for importing bills of exchange include: the enterprise has the right to import and export, the importer has a good credit standing, a good business record, the import of goods conforms to national laws and policies, the bank credit line or the international trade financing line. Import billing services include: obtaining better prices according to letters of credit and trade contracts, and delaying compensation to some extent to avoid exchange rate risks. According to credit guarantee 2, guaranteed delivery means that the imported goods have arrived in Hong Kong, but the original transport documents have not been received. The issuing bank shall apply to the transportation company to open the importer's delivery guarantee, especially the payment under the first import trade financing letter of credit. The delivery guarantee conditions include: the applicant, importer and commercial credit record of the issuing bank are very good, and the bank credit line or international trade financing line should generally belong to offshore transportation. The function of ensuring service delivery includes timely delivery, so that you can avoid ballast, reduce storage and grounding costs, and avoid possible losses caused by high-quality goods and market changes. The main types of exports provided by trade finance are: packaged loans (pre-shipment inspection), export bills (after shipment), export discounts, forfaiting, export factoring and export credit insurance bills. 3. Packaged export letter of credit Packaged loan is a short-term financing production and business activities such as production, ordering and transportation based on the repayment source guarantee prepared by enterprises, foreign importers and foreign banks, which is beneficial to export earnings of export enterprises. The conditions of packaged loans include: the enterprise has independent import and export rights, the exporter's credit record and trade settlement are good, the exporter's performance ability is strong, the exporter's credit in the bank or international trade financing line and letter of credit cannot be established by letter of credit, and the beneficiary of the credit line has no soft terms. Packaging loan service, including: when receiving letter of credit or contract, that is, order financing, organizing the supply of goods and ensuring production funds. 4. Export bill The exporter's export bill is a set of documents for the bank, and the bank's purchase document is a document that deducts interest and date according to the face value. The expected date will be the date of payment to the net export financing provider. According to the settlement agreement, export bills of exchange can be divided into documentary collection letters of credit and export bills of exchange. The conditions for export negotiation are: the import and export right of the enterprise, good export and trade settlement credit records, export goods within the national laws and policies, shipment, and documents required for bank letters of credit. Export documentary services include: accelerating capital turnover, obtaining foreign exchange funds, solving them as soon as possible, and submitting documents to the delivery bank to finance the exchange rate risk and low interest rate. 5. For long-term export, the maturity date is deducted from the face value of the letter of credit or bank acceptance bill or bank collection acceptance bill, and the bank will add its payment, that is, the discount interest and related expenses of the exchange discount export bill, and the balance will be paid to the financing holder. The conditions for export discount are: the opening/acceptance/guaranteed payment of Xingguo country has a head office within the country risk limit, the opening/acceptance/factoring credit line has documents from the head office, and the factoring news is accepted or discounted by issuing a time draft/acceptance/factoring bank. The discount service of outlets includes: foreign banks can accept bills of exchange after financing, speed up capital turnover, obtain foreign exchange funds, advance low foreign exchange interest rates and avoid exchange rate risks. 6. Forfaiting, as an overseas agent, the underwriting bank or bank has no recourse to buy credit notes, buys domestic and foreign press cards and accepts or pays them, and accounts receivable or institutions increase the collection of paid financing bills. Starting from forfaiting, the conditions are as follows: opening/accepting/paying/guaranteeing the national risk limit at the head, opening/accepting/paying/factoring the credit line, the bank has the documents, after issuing the bill of lading or receipt,/accepting/paying/insuring Fuxing Cheng, paying or paying insurance, accepting and promising to pay and guaranteeing the true and effective information. The conditions for acting as an agent for forfaiting are as follows: the risk of the national bank and the agent bank is the main line, and the buyout is accepted; The quotation of the agent bank is within the scope of acceptance, payment or line acceptance through the issuing/acceptance/payment/insurance payment bank; And the true and effective information of the guarantee, acceptance, payment or payment guarantee of the promissory payment of the time draft or receipt. Forfaiting's business includes: financing, risk prevention-advance sales tax rebate, perfect declaration and prevention of exchange rate risk. 7. International Factoring International factoring means that when exporters and importers sell goods or provide services, import and export factors use credit card (O/A), D/A and other credit business consulting surveys to provide comprehensive financial services such as factoring, management and collection of accounts receivable, credit risk management and trade financing. The export factoring conditions are: export credit and trade settlement have a good record, the export industry is more suitable for factoring business, the export goods are settled by D/A or D/A quota that meets the national requirements and is more suitable for factoring business, the importer is allowed to import factoring credit risk limit, and the accounts receivable are agreed to be transferred to the bank. Export factoring services include bad debt guarantee, financing, accounts receivable collection, account management and improvement report. 8. Export credit insurance financing Export credit insurance financing means that exporters apply for export credit insurance from China Export Credit Insurance Corporation. After the goods are delivered, submit the relevant documents to the bank for transfer to the bank account or the bank for compensation of stock accounts receivable and insurance rights. After the transfer, the bank deducts the expected interest and financing cost at face value from the date of collection, and the exporter pays the short-term financing in advance. The financing conditions of export credit insurance are as follows: export credit and trade settlement records are good, and exporters, exporters, banks and CITIC are safe; a tripartite Compensation Transfer Agreement is signed, and the credit risk limit of China Export Credit Insurance Corporation is verified; the obligations of the Credit Insurance Bureau for the insurance period are fulfilled according to this provision, and documents and files are submitted. The functions of export credit insurance billing service include bad debt guarantee, financing, risk management and improvement report. As can be seen from the above, it has the characteristics of self-compensation trade financing, which is short-term, timely, low-risk and high-yield.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.