Forms of Short-term Financing/Summary

Unit 7.1-Forms of Short-term Financing

Introduction | Preparing to Borrow | Vendor Financing | Documentary Collections | Bank Check | Personal Resources | Bank Financing | Export Credit Insurance | Guarantees | Ex-Im Bank Financing | SBA | Equity Investment | Earnings Requirments | Working Capital | Collateral | Resource Management | Primary Differences | Factoring | Forfaiting | Summary | Resources | Activities | Assessment Return to Trade Finance Module 7: Short-term Financing

Summary

A variety of short-term financing tools are available to exporters and importers. These tools range in simplicity, cost, requirements and risk. The need for financing will depend on the parties involved in the transaction, the countries involved, the products/services being traded, the amount of the transaction, and regulations that surround the transaction. Selecting and qualifying for appropriate financing tools can make or break the transaction and the profitability achieved by the importer and exporter significantly. Do your homework as programs change; identify your options; and select the appropriate tools.

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