Introduction
The second major section is designed to
be a reference guide.
Chapter 6 provides a detailed explanation
of core trade concepts and instruments.
This includes an analysis of important trade
documents, such as invoices, bills of lading
and insurance documents. The four core
trade payment terms (open account trading,
documentary collections, documentary
credits and payment in advance) are all
explained in detail.
Chapter 7 sets out explanations of all the
various techniques available for financing
trade and working capital. These range
from the use of overdrafts and bank loans,
through invoice discounting and factoring,
to structured trade finance arrangements.
In each case, the advantages anddisadvantages of the technique are examined
in detail.
The book concludes with three
appendices. The first is a series of country
profiles, being a particularly useful reference
source that gathers together information
outlining the main issues affecting trade in 59
countries. Topics covered include currency
and exchange controls, documentation and
licence requirements for imports and exports,
and the application of taxes and tariffs on
imports and exports. The second appendix
is a guide to the most commonly used
calculations in trade finance. The last is a
glossary of trade finance terms.
We hope you enjoy reading the guide, and
that you find the work as a whole to be a very
useful addition to the treasury library.