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Understanding trade finance and how it can support international trade

Updated over 3 weeks ago

Businesses use trade finance to pay suppliers upfront and keep orders moving, even when cash flow is tight.

A lender can pay your supplier directly or issue a letter of credit to guarantee payment. They may also support you with documentation, insurance, and collecting payment from your customer, helping you manage international transactions more confidently.

Approval usually depends on the strength of your order and your customer’s credit profile, not just your own. This makes trade finance a flexible way to grow without putting extra strain on working capital.

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