Trade & Commodity Finance is related to domestic and international trade transactions. These transactions involve commodities. For a trade transaction there should be a seller to sell the commodities and a buyer who will buy the commodities. Intermediaries such as banks can facilitate trade transactions by financing the trade. Before the bank fulfills a new financing request, the risk position of the client will be checked. This risk position is influenced by:

  • Remaining amount of the facility
  • Other exposures of the client (loans, SBLC’s, Current Accounts)
  • The collateral provided by the client

 

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