Financing Trade and International Supply Chains Commerce Across Borders, Finance Across Frontiers
The vast majority of international trade is supported by some form of trade financing: a specialized, sometimes complex form of financing that is poorly understood even by bankers and seasoned finance and treasury experts. Financing Trade and International Supply Chains takes the mystery out of trade and supply chain finance, providing a practical, straightforward overview of a discipline that is fundamental to the successful conduct of trade: trade that contributes to the creation of economic value, poverty reduction and international development, while increasing prosperity across the globe. The book suggests that every trade or supply chain finance solution, no matter how elaborate, addresses some combination of four elements: facilitation of secure and timely payment, effective mitigation of risk, provision of financing and liquidity, and facilitation of transactional and financial information flow. The book includes observations on the effective use of traditional mechanisms such as Documentary Letters of Credit, as well as an overview of emerging supply chain finance solutions and programs, critical to the financing of strategic suppliers and other members of complex supply chain ecosystems. The important role of export credit agencies and international financial institutions is explored, and innovations such as the Bank Payment Obligation are addressed in detail. Financing Trade and International Supply Chains is a valuable resource for practitioners, business executives, entrepreneurs and others involved in international commerce and trade. This book balances concept with practical insight, and can help protect the financial interests of companies pursuing opportunity in international markets.
’...very informative, full of useful information and a great read for anyone involved in international trade or trade finance, at any level or angle. A remarkable and very contemporary approach to issues that are currently very hot in international commerce.’ Eduardo Klurfan, Chief Representative and Country Head, Cuba, Bank of Nova Scotia, Havana, Cuba ’A very comprehensive description of all relevant aspects all stakeholders in financing trade and international supply chains have certainly waited for.’ Markus Wohlgeschaffen, Managing Director, Global Head of Trade Finance and Services, Global Transaction Banking, Unicredit Bank AG, Munich, Germany ’I wish I had a copy of this publication 29 years ago when I commenced my career as it would have provided both an excellent overview and a more in-depth treatment of the trade finance world...’ Maninder Bhandari, Founder, Partner and Managing Director, The Encore Group and The Derby Group, Dubai, UAE ’Malaket offers an insightful compendium of facts, figures, practices and case studies that show the reader how the world’s trade finance architecture actually works. His portrayal is thematic, and grounded in theory, but he somehow manages to bring that theory to life. He also captures the evolutionary nature of the system - the fact that we are watching a movie, not examining a snapshot, comes through loud and clear. This book will be required reading for beginners and veterans alike.’ Stephen S. Poloz, Governor of the Bank of Canada and past President and CEO of Export Development Canada ’The environment around international trade and trade finance has changed considerably in the years I have known Alexander Malaket. While banks have dedicated departments to meet the many requirements related to trade and supply chain finance, they also need to rely on external specialists, of which Alexander is one of the most knowledgeable representatives. This book is another evidence of his ability to stay on