Unlocking Liquidity & Mitigating Risks
Unlocking the Benefits of Trade Finance
The seminar kicked off with a detailed presentation on the various benefits of trade finance. Attendees learned how these financial instruments can help mitigate risks, improve cash flow, and offer security for both importers and exporters, as well as manufacturers.
Selecting the Right Incoterm
Understanding International Commercial Terms (Incoterms) is crucial for any business engaged in global trade. The seminar provided an extensive overview of these terms, explaining the obligations of the buyers and the sellers, the shifting of risk from seller to buyer (where and when the seller ‘delivers') and which and who bears the costs involved. This session aimed to reduced disputes and ensure clarity in international trade agreements, a vital aspect for any successful business relationship.
Navigating Methods of Payment
Various methods of payment, such as Documentary Credits (DCs), Documentary Collections, Advance Payments, and Open Account transactions, were explained in detail. The session highlighted the advantages and potential risks of each method, enabling businesses to make informed decisions tailored to their specific needs.
Exploring Pre- and Post-Shipping Financing Options
The seminar also covered financing options available both before and after the shipment of goods. Trade financing solutions such as back-to-back documentary credits, Collateral Management Agreement (CMA), Stock Monitoring Agreement (SMA), Security by Title Transfer Agreement (STTA), bill of lading financing, invoice discounting, factoring and reverse factoring were discussed. International experiences were also shared with attendees to elaborate on the importance of such trade financing. These options are designed to provide liquidity and support business growth, ensuring that companies have the necessary funds at every stage of the trade process.
Supporting Local Businesses
“We are committed to supporting our customers' international business ventures by providing the necessary knowledge and financial tools to help them navigate this often complex but crucial part of their business”, explained
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Finance
Finance
Triq il-
Zejtun
ZTN 2401
Tel: 21224 525
Fax: 21449 212
E-mail: info@financemalta.org
URL: www.financemalta.org
© Mondaq Ltd, 2024 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source