Trade finance signifies financing for trade, and it concerns both domestic and international trade transactions. A trade transaction requires a seller of goods and services as well as a buyer. Various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade.
While a seller (or exporter) can require the purchaser (an importer) to prepay for goods shipped, the purchaser (importer) may wish to reduce risk by requiring the seller to document the goods that have been shipped. Banks may assist by providing various forms of support. For example, the importer's bank may provide a letter of credit to the exporter (or the exporter's bank) providing for payment upon presentation of certain documents, such as a bill of lading. The exporter's bank may make a loan (by advancing funds) to the exporter on the basis of the export contract.
Other forms of trade finance can include Documentary Collection, Trade Credit Insurance, Factoring or forfaiting. Some forms are specifically designed to supplement traditional financing.
World Trade may refer to:
World Trade was a U.S. progressive rock band that featured Billy Sherwood on bass and vocals and Bruce Gowdy on guitar. Yes's Chris Squire performed on their second album, Euphoria.
The band was formed with Sherwood on lead vocals and bass, Gowdy on guitars, Guy Allison on keyboards and Mark T. Williams on drums. World Trade evolved from an earlier band, Lodgic, featuring Sherwood and Allison.
Their 1989 eponymous debut was co-produced by Keith Olsen. A second album followed in 1995 on Magna Carta Records, with Williams being replaced by Jay Schellen. The album was produced by Sherwood. The band's sound had similarities to 1980s Yes and the album included two Chris Squire Experiment songs and Squire (uncredited) assisted on backing vocals.
Sherwood and Schellen also recorded tracks for a series of tribute albums by Magna Carta.
Sherwood has frequently collaborated with Schellen since. In the mid-2000s, Sherwood and Gowdy began work on a new World Trade album, but this was abandoned and material is planned on a release called Psy-Op.