Importance of Trade Finance & Structured Trade Finance for Importers and Exporters of Commodities?

Mar 28 2022 Published by admin under Uncategorized

Trade finance is the method importers and exporters of commodities and goods use to finance their business. Basically, trade finance has been in existence for many thousands of years – and one can trace the roots of trade finance and structured trade finance right back to the early days of China and the silk route, Mesopotamia and Europe. Trade Finance was around long before Europeans settled in America and long before the world’s stock markets were born!Today, trade finance is a massive, multi-billion dollar business. As the world trades more and more goods and commodities are bought and sold, so more and more banks and financiers are needed to lend money to finance the purchase and sale of these goods and commodities – right across the global supply chain.How is trade finance and structured trade finance useful?Take an example: imagine you are a trader in cocoa beans in Cote d’Ivoire, buying beans locally and selling them to foreign buyers. To make your purchases, you will need to have money to buy the cocoa up-country in Africa, prior to their export. Where will you find money to make these purchases? And supposing you are the international buyer; the shipper, purchasing from cocoa traders all over West Africa – how will you finance your transactions, which at any one time may exceed your cash reserves? What might be supported by your bank who, if they are traditional lenders, will only lend against your balance sheet?This is where trade finance and structured trade finance is useful – your business can grow and develop if you use the services of a specialist trade finance department who will structure trade finance structures can be tailored to your needs, using the collateral of the goods you are trading, rather than your own balance sheet or other assets.What is the basis of trade finance and structured trade finance?Goods and commodities have an underlying value of their own. For example, if cocoa beans are worth many hundreds or even thousands of dollars per tonne, then once a big pile of beans is accumulated in one place; in a warehouse or on a ship, it is worth a lot of money. A bank may lend money against the total value of the beans, minus some amount to take account of price and other risks
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It is the same for every commodity or trade good which is resalable. A bank will make a loan as long as the collateral “adds up” and as long as the bank is comfortable with the way the deal is structured between both the buyer and the seller. Of key importance is that if something goes wrong the bank is able to take possession of the commodities or goods and sell them to realise monies to repay any loan amounts outstanding.Basically, when we talk of structured trade finance we are talking of deals whereby complex arrangements are put in place to ensure a bank can take possession and sell the underlying capital used for the loan; in this example, the goods and commodities themselves.Is trade finance complicated?No. It is a simple business although the structures used in trade finance in more complex deals require a lot of work for all of the parties involved. This is why the total loan amount of a structured trade finance loans must be high enough to warrant the involvement of highly-paid bankers, lawyers and other advisers.Where can I find out more about trade finance and structured trade finance?Day Robinson Group has offices in London and New Delhi and is one of the world’s foremost providers of training in the trade finance sector. For more information, you can visit our site at: http:///www.dayrobinson.com or you can contact the author of this article, Dan Day-Robinson at Day Robinson International in the UK ([email protected]).

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Top Online Masters in Finance Programs

Mar 28 2022 Published by admin under Uncategorized

Most universities today offer the Masters in Finance as an option within the structure of the MBA program. Schools of business usually have several areas of concentration to choose from in the second year of a two year, full time MBA course of study. At most schools the most popular major for the MBA is Finance. The list of schools below all include finance as an MBA option and in some cases offer additional graduate level options for degrees related to finance, either within the context of corporate operations or as an analytical profession. Some universities offer a Masters in Financial Mathematics for students interested in the complexities of analytics or in a PhD program that specializes in the technology of business finance. The schools listed below all have degree programs designed for career advancement in the business world.New England College of Business and Finance has been in existence since 1909 when it was founded as the New England Banking Institute. Over the years it has evolved from a finance training institution to a full fledged degree granting college accredited by the New England Association of Schools & Colleges. The Master of Finance degree includes eleven advanced courses that cover International Finance, Applied Quantitative Methods, Enterprise Risk Management, Portfolio Management and several other areas of the academic discipline. The college has a solid background in educating aspiring professionals in the banking and finance industries.Baker College offers the online MBA in Finance with a program that includes thirty three credit hours devoted to business studies and an additional twenty credit hours for classes in the finance specialization. Among the business core courses are classes in Research & Statistics for Managers, Accounting for the Contemporary Manager and Management Information Systems, so the analytic tools and IT requirements for a Masters in Finance are covered in the first section of the program. Advanced finance classes include Public Finance and International Business Finance.University of Liverpool has ventured into the international online education field with its online MBA program. Since the program was accredited by the European Foundation for Management Development it has developed a student body drawn from over 175 nations. The MBA in Finance and Accounting is delivered in modules, with each module consisting of classes that increase in complexity. The University provides e-books or printed textbooks at no charge. Finance modules include Investment Strategies, Financial Reporting, Business Finance and Advanced Managerial Accounting.Kaplan University offers an online Masters of Business Administration with specialization in Finance that can be completed in one year of full time study or two years of part time study. The curriculum includes mergers and acquisitions, international business finance, foreign exchange risk, hedging strategies, and global positioning of assets. Kaplan also offers a MBA in Entrepreneurship that delves into the creative sources and uses of capital involved in a startup.Northeastern University offers a MBA in Finance online through its School of Business. This area of concentration covers mergers and acquisitions, licensing, joint ventures, and IPOs from a management perspective. There is also a MBA in Entrepreneurship that includes some of these advanced courses. In addition Northeastern offers an online Master of Science in Finance that focuses entirely on the complexities of accounting and finance, quantitative and modeling methods, and international finance structures for global businesses.

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