Credit sale and advance payment are the main forms of commercial credit in domestic trade, but in international trade, commercial credit is more manifested in financing arrangements included in international trade settlement, mainly in deferred payment provided by exporters to importers.
Bank credit means that importers or exporters obtain financing facilities provided by banks and other financial institutions. For example, the bank accepts the draft and discounts the draft issued by the exporter to the importer; Banks provide import and export documents to importers and exporters.
2. According to the time limit for providing credit, it can be divided into short-term credit in international trade and long-term credit in international trade.
Short-term credit for international trade refers to trade credit with a term of less than 1 year, which mainly meets the capital demand for the import and export of consumer goods with faster commodity turnover and smaller turnover.
Long-term credit in international trade refers to trade credit with a term exceeding 1 year, which is mainly used to meet the capital demand for the import and export of capital goods such as large complete sets of equipment with long turnover period and large amount.
Compared with short-term international trade credit, the outstanding feature of medium-and long-term trade credit is that the government often provides various preferential support, including export credit spread subsidies, guarantees and insurance, and even sets up special institutions to provide policy credit business.