The changing world of trade finance

摘要

Trade finance used to be a pretty sluggish part of cross-border transactions, an antique activity whose practices were rarely revamped. Letters of Credit, the classic tool, haven't changed since the European Renaissance. Exporters used to call it an activity for "guys wearing green eye shades." But, things have changed, big time. Above all, the Internet has begun to revise the way that trade documents are created and transmitted, producing a dramatic improvement in the way that both information and cash are moved. The result has been an acceleration of collections that strengthens cash flow, boosts investment income, and bolsters balance sheets. Many financial officers are smiling.