This Service Domain fulfills a credit line facility that supports the trade financing requirements for a customer active in import and export trade. Traded goods and services can be booked as collateral to the loan.
Examples of Use
An importer sets up a loan that draws on its credit line with the bank to finance the advanced purchase of goods from an overseas supplier
Trade finance covers a broad range of financing, guarantee and transaction processing services. This Service Domain handles the fulfillment of a flexible line of credit provided to a customer active in import/export business to provide them access to trade related financing. Traded goods and services can be used a collateral against loans applied to the facility.
Related Business Scenarios
Core Business Object
- Initialize the trade finance credit facility
- Provide access to book loans against the facility
- Calculate and apply interest and fees
- Process withdrawals and deposits
- Administer collateral allocations made against the facility
- Support account reconciliation and reporting requirements