Trade finance is the financing of international trade flows, acting as an intermediary between importers and exporters to mitigate the risks involved in transactions and enhance working capital efficiency in businesses. It deals with activities related to financing of domestic and international trade. The trade finance includes issuing letters of credit (LCs), receivables and invoice finance, credit agency, export finance, bank guarantees, insurance, and others. It is used by buyers, sellers, manufactures, importers, and exporters to ease financing activities and deals with the way cash, credit, investments, and other assets are used for trade. The key advantage of trade finance is that it facilitates easy way to arrange short-term finance. The global trade finance market was valued at $39714.2 million in 2018 and is expected to reach $56,065.6 million by 2026, registering a CAGR of 3.79% from 2019 to 2026.
Major Key Players of the Trade Finance Market are:
Asian Development Bank, Bank of America Corporation, BNP Paribas, Citigroup Inc., Euler Hermes, HSBC Holdings PLC, JPMorgan Chase &Co, Mitsubishi UFJ Financial, Royal Bank of Scotland, Standard Chartered PLC, Industrial and Commercial Bank of China Limited, Export-Import Bank of India, Mizuho Financial Group, Inc, Commerzbank AG, African Export–Import Bank
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