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Best Trade Finance Credit Facility

 What is a Trade Finance Credit?

Trade Finance Credit is a method that allows the importer to purchase goods without paying in advance. Instead, the importer can make payment post the delivery of goods or at a scheduled date. This business-to-business (B2B) model usually allows the importer to make the payment within 30, 60, or 90 days followed by an invoice. Therefore, a trade finance credit can possibly be seen as a type of 0% financing model. It also helps to boost the business assets.

In other words, trade finance credit is an arrangement between both parties, i.e., the importer and the exporter. It allows both parties to conduct the exchange of goods and services without the need of paying immediately. So, when the exporter allows the importer to pay at a later date, this is known as trade finance credit.

Trade Finance Credit Analysis

When it comes to allowing a trade finance credit, an exporter or the business needs to evaluate the customers. The evaluation can be done based on the prediction that if the customers will pay or not. Below are some of the sources that can help to define the creditworthiness of the customers.

-  Financial statements: An exporting business may ask the customers to present their financial statements.

-  Credit history of the customer: A business may validate the customer's previous information regarding the credit strength. The simplest way to do so is to identify whether the customers have paid their previous bills or not.

-  Banks: In most cases, banks assist the business in collecting the customer's information regarding creditworthiness.

-  5 Cs of finance credit:

  • Character - The customer's desire to complete payment
  • Capacity - The customer's capacity to complete payment from the cash generated
  • Capital - The customer's assets
  • Collateral - A declared asset in case the payment is not made
  • Conditions - Economic/Political conditions

Our Trade Finance Advisory Services

If you are looking for a trade finance credit facility, then you are in right place. Merchant Trade Guarantee Corporation Company Limited (MTG), the most reputed trade finance solution provider is here for you. Our team of experts comprises scholars in the line of trade finance credit facility. 

Visit merchanttradecorp.com and unlock the benefits of the best trade finance advisory services. We have been catering as the top Trade Finance Solution Provider for over 20 years now. So, what are you waiting for? Connect with us and relax while we assist you with our best trade finance advisory services.

Merchant Trade Guarantee Corporation Company Limited (MTG)

Phone: +66 651209539

Email: info@merchanttradecorp.com

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Location: Bangkok, Thailand

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