Trade Finance Guide

Finance Your Way to New Sales and Ensure Getting Paid with this Key Resource     

Is your business looking to make that export sale, but needs clarity on financing options and methods? Did you know that having open account terms may help win customers in competitive markets? Is insisting on cash-in-advance always a good idea? What are the advantages of exporting on consignment? What do I need to know about export working capital financing or export credit insurance? Get answers to these questions and a wealth of other information in a trusted resource: The Trade Finance Guide: A Quick Reference for U.S. Exporters. 

Ninety-five percent of the world’s potential consumers live outside of the United States, and many U.S. businesses continue to take advantage of these market opportunities. However, many other businesses are hesitant to export or expand into new markets due to risks such as non-payment or delayed payment by foreign buyers, political and commercial risks, and for other reasons. The result is missed opportunities. Is your business one of them?  

Concise, simple, and easy-to-understand, the Trade Finance Guide is helping numerous small- and medium-sized businesses turn export opportunities into actual sales. And it can help your business too. How? By providing practical, how-to advice in a simplified format to help achieve the goal of getting paid—especially on time—and effectively managing risks associated with doing business internationally. 

This edition includes information on commercial trade finance instruments as well as U.S. government export financing resources and programs available through the U.S. Export-Import Bank (EXIM Bank), U.S. Small Business Administration (SBA), and U.S. Department of Agriculture (USDA).  Click on a topic to explore the guide.

Methods of Payment in International Trade

Cash-in-Advance

Letters of Credit

Documentary Collections

Open Account Consignment

Export Working Capital Financing 

Government-Guaranteed Export Working Capital Loan Programs

Export Credit Insurance

Export Factoring

Forfaiting

Government-Assisted Foreign Buyer Financing

Government-Backed Agricultural Export Financing

Foreign Exchange Risk Management