TRADE AND STOCK-FINANCE

November 5, 2019

Trade finance in its simplest form is when an exporter requires an importer to prepay for goods shipped. This gives the importer two main challenges. The first is that prepaying for goods from places such as China or India, for example, will seriously impact the company’s cash flow due to the long shipping times involved. The second challenge is how does the importer reduce the risks of paying for goods in advance? These two challenges are mainly resolved by the importer’s bank or independent trade finance provider providing a letter of credit to the exporter, or the exporter’s bank, guaranteeing payment upon presentation of certain documents. These documents may include a bill of lading.

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Ameriprise Financial Services, Inc.

Ameriprise Financial has helped millions of clients achieve their financial goals for more than 120 years. We have a network of approximately 10,000 financial advisors* who use a personalized approach to help clients plan for the full and rich life they’ve earned. We believe that with the right advisor, the right advice, and the right firm, life can be brilliant. Ameriprise has corporate locations throughout the U.S. and across the globe, and advisor offices in all 50 states.Learn how you can build your career at Ameriprise Financial.

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