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Structured Trade Finance - What Does It Mean?

In recent years, structured trade finance products coupled with the recent advances in technology are considered as the fundamental reasons for the increasing volumes of international trade. Structured trade finance supports 1/3rd of the global trade activities. It encourages the free flow of capital goods and commodities from one country to another. It is used primarily in the commodity sector.

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Structured Trade Finance - What Does It Mean?

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  1. Adam Smith Associates Pvt. Ltd. www.adamsmith.tv A Global Trade Finance Company http://adamsmithassociates.blogspot.in/ https://adamsmithassociates.tumblr.com/

  2. Structured Trade Finance – What Does It Mean? Adam Smith Associates Blog | August 2, 2017

  3. Structured Trade Finance - What Does It Mean? Adam Smith Associates Blog | August 2, 2017

  4. Structured Trade Finance - What Does It Mean? Adam Smith Associates Blog | August 2, 2017 Structured trade finance (STF), a type of debt finance, is used as an alternative to conventional lending. This form of finance is utilized regularly in developing countries, as well as, in relation to cross border transactions. The objective is to encourage trade by making use of non-standard security. STF is generally used in high-value transactions in bilateral trading relationships. As a more complicated type of finance, STF is commonly related to commodity trading.

  5. Structured Trade Finance - What Does It Mean? Adam Smith Associates Blog | August 2, 2017 Within the commodity sector, STF products are most prevalent. It is used by producers, processors, traders, as well as, end-users. These financial arrangements are tailored by banking organizations to meet the precise needs of the clients. STF products are primarily working capital financing, warehouse financing and pre-export financing. There are also some institutions that extend reserve-based lending, as well as, finance the conversion of raw materials into products, along with other customized finance products. In order to promote trading activities, STF products are extended across the supply chain.

  6. Structured Trade Finance - What Does It Mean? Adam Smith Associates Blog | August 2, 2017 STF structures are sponsored by limited recourse trade finance lines. The structure aims at offering better security mechanism and to act as an enhancement on the position of the borrower when viewed in isolation.

  7. Structured Trade Finance - What Does It Mean? Adam Smith Associates Blog | August 2, 2017 How Has Technological Advancements Complemented STF? Trade credit insurance, bank assurances, letters of credit, factoring and forfaiting are some of the STF products that have been positively affected by the latest technological advancements. These products have changed due the recent developments. The massive progress in communication and information domains have also helped the banking institutions to track the physical risks and events in the supply chain between the exporter and the importer.

  8. Structured Trade Finance - What Does It Mean? Adam Smith Associates Blog | August 2, 2017 Why are STF Facilities Used? Structured trade finance products are used so that the risks related to trading in specific country and different jurisdictions can be mitigated. Any transaction together with STF products help to add resilience to the trade and the same cannot be said when looking at financing the individual elements of a trade. Moreover, it allows for lengthening the payment time, strategizing procurement, diversifying funding and enhancing the ability for clients to boost the facility sizes.

  9. Structured Trade Finance - What Does It Mean? Adam Smith Associates Blog | August 2, 2017 What makes STF extremely attractive is that the borrower’s strength in the transaction is not scrutinized as closely as compared to a vanilla loan. Here, the focus is more on the structure and the underlying cash flows. Another reason for STF’s popularity is that the transactions are not reflected in the balance sheet of a company and the presence of this financing option has helped several importers to maintain flexible credit terms with exporters.

  10. Structured Trade Finance - What Does It Mean? Adam Smith Associates Blog | August 2, 2017 In recent years, structured trade finance products coupled with the recent advances in technology are considered as the fundamental reasons for the increasing volumes of international trade. Structured trade finance supports 1/3rd of the global trade activities. It encourages the free flow of capital goods and commodities from one country to another. It is used primarily in the commodity sector.

  11. Disclaimer Adam Smith Associates Blog | July 15, 2017 We empower our clients by providing values added services that benefits them with the right knowledge and boosts their business decision on Domestic and International Trade. To provide the best, we tie up with leading technical analysts in India to offer latest Relevant updates on currencies, commodities, domestic and internal stock and commodity indices and special reports on internal treasury, crude and many other related subject to enable your decision making. While the intention of this blog is to offer this wholistic view to our website visitors and clients, the information contained on blog is for general information purposes only. dam Smith Associates assumes no responsibility for errors or omissions in the blog contents. http://adamsmithassociates.blogspot.in/ https://adamsmithassociates.tumblr.com/

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