Reply To: State the differences between export and trade finance.

[Anonymous]

Businesses operating across borders have several financing options to assist the purchase of goods and mitigate risks while exporting. Export finance allows sellers to sell services and goods overseas by offering guaranteed and advanced payment.

Trade finance helps firms to trade domestically and internationally by offering financial support. Both trade and export finance include various other types of finances. One of great importance is asset-based finance techniques, including invoice, discounting and factoring, and forming a portion of the finance agreement.