Trade finance is an extremely valuable financial aid when it comes to properties and goods bought and sold between importers and exporters. Usually in the property buying process, cash plays an enormously valuable role and the moment waiting periods are involved deals might get delayed or some deals might even be missed.
What is trade finance?
Trade finance is a form of credit which is provided to you in the form of cash, Murabaha, Mudaraba contracts, letters of credit, and other financing models. Therefore if you want to buy a property or any other valuable items or goods for that matter, but you don’t have the immediate cash/funds or finance on hand and in place as the fees might still be overseas, you can use trade finance to pay for the off-shore goods in the meantime and pay back the creditor afterwards.
Trade finance can therefore help you to get the property or goods that you want within a certain time period by filling the gap between waiting for foreign exchange and cross-border money transfers, whereas if you had to wait for your cash to liquidate or to come into the country where the property is sold, you might have not received the goods at the discounted price, and the specific bargain property at that time, and you could lose out on big deals without this financial aid. That is exactly where trade finance comes in.
At Intercorp we know how important and valuable trade finance can be when you are amidst an important deal, and you do not want to miss out on an available property or goods offshore. This is why we provide numerous trade finance options for you to choose from to get your deal on the go today.
Browse our website for more information on how Intercorp can help you reach your goals.