Trade Finance

Trade finance refers to financial instruments and services that facilitate international trade by financing goods or services from supplier to end buyer, mitigating risks like non-payment or non-delivery. It unlocks working capital from receivables, stock, or purchase orders, enabling businesses to bridge payment gaps in trade cycles. Globally, up to 80% of trade relies on these solutions, valued at trillions, powering economic growth

Brief History of Trade Finance

Originating in ancient Mesopotamia with clay tablet guarantees around 2000 BCE, trade finance evolved through medieval Italian bills of exchange and 19th-century letters of credit standardized by the ICC’s UCP in 1933. Post-WWII, institutions like EXIM Bank and ECGC spurred growth, with digitization via blockchain and SCF platforms accelerating adoption since 2010. Today, amid geopolitical tensions, it supports $28 trillion in annual trade flows.