A quick look at trade finance

March 1, 2021


  1. Trade finance is a catch all term, covering any form of financing in a trade transaction, both domestically and internationally.
  2. Common forms of trade finance:
    1. Supply chain finance (aka reverse factoring and payables financing)
    2. Factoring (invoice financing)
    3. Purchase order (PO) financing
    4. Letters of credit and guarantees
  3. Benefits to using a trade financier:
    1. Reduced risk – the trade financier can help reduce risk of loss for the seller and the buyer in a transaction.  It can serve as a third party check/balance controlling the release of funds once goods or services are provided as promised. 
    2. “Mind the Gap” – trade financiers bridge the gap between the seller and the buyer, controlling the transaction and providing assurances, easing the way for increased transactions.
    3. Pit crew – Utilizing a trade financier can streamline the financial portion of the transaction, allowing teams to keep their focus on the track.    

Mitigate Risk | Minimize Loss | Maximize Potential with Capital Plus.

Renee Tyack
Vice President of Sales
Capital Plus, a division of United Capital Funding Group, LLC.
Office: 614-848-7620
ReneeTyack@capplus.com