According to the World Bank, international trade drives growth and competitiveness. It promotes fairness. It spurs innovation and efficiency. When trade flows in a rules-based system, jobs, wages, and investment increase.
A critical piece of trade, especially within a global supply chain, is trade finance.
Trade finance ensures that buyers receive their goods and sellers receive their payments. Simply put, the movement of goods and services across borders doesn’t occur without trade finance.
Yet the world faces a massive and persistent trade finance gap—by some estimates as large as $6.5 trillion—as the pandemic continues to hit businesses across the globe.
Read on to learn three key trends in the world of trade finance.