20 years: Trade finance & banking
Andy covers the most common risks involved in a transaction in Trade Finance as well as other considerations.
Andy covers the most common risks involved in a transaction in Trade Finance as well as other considerations.
4 mins 44 secs
Running a successful trade finance business involves understanding and mitigating the risks inherent within the transaction. All commercial transactions contain risks. These risks refer to the likelihood the seller, buyer, or financier will make or receive a payment. The challenge for a trade financier is to minimise, or where possible, eliminate those risks.
Key learning objectives:
Define Supplier Performance Risk and Purchaser Performance Risk
Explain how these risks can be mitigated
Understand what other considerations need to be made, especially when dealing with foreign countries