What is Trade Credit Insurance: A Clear Explanation
Damien / 01 September 2023 / Commodity trading - Trade finance
Trade credit insurance is a type of insurance policy that protects businesses from financial losses due to unpaid debts. It is a valuable tool for companies that rely on credit sales to maintain cash flow and grow their business. Trade credit insurance policies can be customized to meet the specific needs of a business, and can cover a range of risks, including insolvency, bankruptcy, and political risks.
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Asset-Based Lending in Trade Finance for Beginners: A Clear Guide
Damien / 31 August 2023 / Commodity trading - Trade finance
Asset Based Lending (ABL) is a type of financing that allows businesses to leverage their assets to secure a loan. In trade finance, ABL has become an increasingly popular option for companies looking for funding to support their international trade activities. This is because ABL allows businesses to borrow against the value of their inventory, accounts receivable, and other assets, providing them with the working capital they need to grow their business.
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Best Payment Terms for Purchasing Commodities: A Comprehensive Guide
Damien / 30 August 2023 / Commodity trading - Trade finance
The best payment terms when purchasing commodities depend on multiple factors, including the specific commodity, the parties involved, the quantities involved, the length of the business relationship, and the specifics of the current market. Some commonly used payment terms in commodity transactions are:
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How to Use Stand By Letter of Credit: A Beginner's Guide
Damien / 29 August 2023 / Commodity trading - Trade finance
Standby letters of credit are a popular financial instrument used in international trade transactions. They provide security to both the buyer and the seller by guaranteeing payment in the event that one party fails to fulfill their obligations. For beginners, using standby letters of credit can seem daunting, but with a little knowledge and guidance, they can be a valuable tool in conducting business transactions.
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How to Use Letter of Credit for Beginners: A Clear and Confident Guide
Damien / 28 August 2023 / Commodity trading - Trade finance
A letter of credit is a document that guarantees payment to a seller from a buyer's bank. It is a widely used payment method in international trade, especially for transactions between buyers and sellers who do not know each other. For first-time users, understanding how to use a letter of credit can be a daunting task.
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