Meaning of Trade Finance
Willie Odemwingie, Lecturer, Nigeria, Member
Trade finance is a wide subject. It depends on the perspective from which one is looking at it.
Generally, whichever perspective and whoever is defining and talking about trade finance, it definitely will cluster around doing business at an international level, involving import and export, while dealing with certain issues.
Trade finance becomes more difficult and cumbersome during an economic down turn. The risks in trade finance can be managed through factoring or discounting of invoices by so called discount houses or factors.