Trade finance or trading loans refer to financing options designed to facilitate domestic and/or international trade transactions between a buyer and a seller. Banks and financial institutions often provide this type of financing, enabling the smooth execution of the transaction.
This form of financing offers additional protection to the buyer and grants the seller quicker access to the funds generated by the transaction. Various specific types of loans support traditional trade loans, including documentary collection, trade credit insurance, factoring, and forfeiting.
Different types of bank guarantees include :-
In India, the eligibility criteria for trade finance or trade loan options are generally similar to global standards. While specific banks may have additional requirements, the following conditions, if met, typically qualify a customer to avail a trade loan without difficulties
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