Willie Odemwingie, Lecturer, Nigeria
Trade finance is a very 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 business finance at international level (import & export)
in dealing with macro economic issues.
Trade finance becomes more difficult and cumbersome during economic down turn
. The risk of trade finance is managed through factoring or discounting of invoices
by discount houses or factors.