Lives and Livelihoods

In every export transaction the elements of credit and finance are inextricable interwoven, and success in the export field requires that every exporter have an understanding of these factors, of their interdependence, and of how they may be assessed and related to a particular situation. From a banker’s standpoint, in relation to export trade, these terms may be defined as follows:

Credit

“The agreement of a seller of merchandise to accept payment from the buyer after a stipulated period after shipment or actual delivery.”

Financing

“ The provision of financial assistance either to the seller or to the buyer by an outside source, such as a bank, for the period during which the goods are in transit and any additional period that may be

arranged to cover special circumstances.”