Trade Finance/Medium- and Long-term Financing

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Trade Finance 

Introduction | M.1 Political and Economic Risk | M.2 Risk Mitigation Techniques | M.3 Commercial Risk | M.4 Payment Methods | M.5 Selecting Payment Methods | M.6 Financial Plan | M.7 Short-term Financing | M.8 Medium- and Long-term Financing


Module 8: Medium- and Long-term Financing[edit | edit source]

Module Introduction[edit | edit source]

The objective of this module is to identify and arrange medium- and long-term finance for an overseas buyer (internal/external) to allow the buyer extended terms while providing cash payment to a seller without recourse.

There are fewer options in the marketplace for medium- and long-term financing of international sales. These limited options have created a need for Ex-Im Bank to provide guarantees for such programs because of the importance of increasing exports. In addition to the US Ex-Im Bank programs, medium- and long-term financing may be available from a variety of multilateral organizations, export credit agencies, regional development banks, and credit insurers. Occasionally, but not often, funding may be available in the private sector.

All of the financing options have specific qualification requirements and may be available only for specific types of projects, or in particular geographic regions, or based on political relationships between the countries involved in the transactions.

In this module, you will be introduced to of the forms of medium- and long-term financing, that is, government-supported finance, finance provided by banks and financial institutions, and lease financing.


Module Sections[edit | edit source]


About this Resource[edit | edit source]

These resources were developed by MSU Global with funding provided by a U.S. Department of Education, Business in International Education Title VIB grant.