The financial instruments utilized by companies to facilitate international trade and commerce is known as trade finance facilities. Trade finance is a broad term which covers many financial products that banks/lenders and companies utilize to make trade transactions feasible like letters of credit, trust receipt, letter of guarantee etc., trade financing helps reduce the risk associated with global trade by reconciling the divergent needs of an exporter and importer. Ideally, an exporter would prefer the importer to pay upfront for an export shipment and an importer would not prefer to pay upfront as the exporter may accept the payment and refuse to ship the goods. Trade finance helps both the parties to build trust in dealing with each other and thus facilitating trade and transaction.