Why Trade finance

 There are many countries which doesn't have abundant resources For example some countries have more oil Resources and  some have natural minerals which in turn brings lot of exchange of goods and services in between countries and same will be applicable within country as well

When there is trade happening in between different countries most of the countries cannot send there money transfer in there local currency 

All most all the countries will trade in Freely marketable currencies like USD,EUR,GBP in international market

To exchange these goods and services with monetary value there should be involvement of some financial institutions to transfer funds from one country to other

Here comes Financial institutions like Banks will get involved by buyers or sellers to sell or buy goods or services in exchange of monetary value 

So Banks facilitate Importers and exporters by providing Financing or guarantees for there products

Why Trade finance

Trade Finance allows companies to buy or sell huge volumes of goods or services

 Trade finance can also help strengthen the relationship between buyers and sellers, increasing profit margins. It allows a company to be more competitive.

Note: This Blog is for knowledge purpose does not applicable for any transaction or disputes