A day in the life of a Trade Financier

What happens in a day in the life of a Trade Financier..??

A Trade Financier is someone who works with a Trade Finance company like the one
featured here.. In very simple terms a Trade Finance company deals with financing of
international trade..
Trade Finance companies are present all over the world in all major trading hubs..
The day described in this article is a typical day in the life of a Trade Financier working
for Trade Finance Global..

A Trade Financiers typical day involves working with clients looking to export or import
goods from around the world, looking at their requirements to match them up with
relevant funders or banks. We will advise on structures, funding partners or what can
be expected when clients have queries.
Most commonly, we will work with our clients to have a Letter of Credit (LC) issued,
which guarantees payment to the exporter through a bank or financier. For example,
the bank could issue funds to an exporter once it has received proof that the item has
been shipped.
The beauty and complexity of LCs is often
tricky for SMEs to grasp their flexibility allows
funders to create a contract which suits both
the importer and exporter, allowing both parties
to share equal risk.
There are several types of LCs,
1. Confirmed an LC is confirmed once the exporters bank has added obligations
to the issuing (importers) bank.

2. Unconfirmed Some LCs can be unconfirmed, which means the LC is only

guaranteed by the issuing bank (not the exporters bank). This is the most
common type of LC in terms of what we deal with at Trade Finance Global,
although it is often not the case where the jurisdiction is in economic or political

unrest.
3. Revocable LCs can also be changed by the beneficiary (with no notification to

the beneficiary if they are revocable.

4. Irrevocable However, under the most recent UCP 600, only irrevocable LCs
should be issued (approval, change, or cancellation of the LC must be agreed by
the beneficiary and the issuing bank).
Documentation is one of the biggest challenges we see when we help SMEs get LCs. In
order to help process the transaction, funders need to see various documents, from
business plans to invoices, as well as shipping documents and information from the
exporters.
The funders often need to see as much detail as possible to assess the inherent risks.
These can include fraud risks (which is why credit checks often occur), legal and
regulatory risks (which is why trade finance lawyers need to check LCs), and
insolvency or buyer risks (which is why a funder would check balance sheets and
accounts of the company seeking trade finance).
The financing package will also have to suit the specific transaction being entered into
e.g. short term stock and vehicle finance would be needed for a business to business
car seller and not a bid bond.
After we have understood the needs of a company,
we will ensure that the business owners connect
with the most appropriate funders on the
negotiated best terms.
A lot of our work is also spent educating SME
owners on trade finance the benefits, challenges
and risks, as well as what can and cannot be
exported or imported.
We work with various institutions and blogs to publish specific guides and help SMEs
access trade finance to help them grow.

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free to send me your details..