Export finance is a process of funding the exporters to facilitate their business in the global market. In simple words, it is a cash flow solution for exporters to cater to their production and other global transaction requirements including working capital.
There are two types of payment methods; exchanging and provisioning. Exchanging involves the use of money, comprising banknotes and coins. Provisioning involves the transfer of money from one account to another, and involves a third party.
Export financing is a cash flow solution for exporters. Export Finance facilitates the commerce of goods internationally. The seller agrees on the payment terms of the cross border buyer.