Trade Finance Market

Trade finance signifies financing for trade, and it concerns both domestic and international trade transactions. A trade transaction requires a seller of goods and services as well as a buyer. Various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade.

While a seller (or exporter) can require the purchaser (an importer) to prepay for goods shipped, the purchaser (importer) may wish to reduce risk by requiring the seller to document the goods that have been shipped. Banks may assist by providing various forms of support. For example, the importer's bank may provide a letter of credit to the exporter (or the exporter's bank) providing for payment upon presentation of certain documents, such as a bill of lading. The exporter's bank may make a loan (by advancing funds) to the exporter on the basis of the export contract.

Other forms of trade finance can include documentary collection, trade credit insurance, finetrading, factoring or forfaiting. Some forms are specifically designed to supplement traditional financing.

Secure trade finance depends on verifiable and secure tracking of physical risks and events in the chain between exporter and importer. The advent of new information and communication technologies allows the development of risk mitigation models which have developed into advance finance models. This allows very low risk of advance payment given to the Exporter, while preserving the Importer's normal payment credit terms and without burdening the importer's balance sheet. As trade transactions become more flexible and increase in volume, demand for these technologies has grown.

Trade Finance Market contains market size and forecasts of Trade Finance in Global, including the following market information:

Global Trade Finance Market Revenue, 2017-2022, 2023-2028, ($ millions)

Global top five companies in 2021 (%)

The global Trade Finance market was valued at 8246120 million in 2021 and is projected to reach US$ 11733540 million by 2028, at a CAGR of 5.2% during the forecast period.

The U.S. Market is Estimated at $ Million in 2021, While China is Forecast to Reach $ Million by 2028.

Guarantees Segment to Reach $ Million by 2028, with a % CAGR in next six years.

The global key manufacturers of Trade Finance include BNP Paribas, Bank of China, Citigroup Inc, China Exim Bank, ICBC, JPMorgan Chase & Co, Mizuho Financial Group, Standard Chartered and MUFG, etc. In 2021, the global top five players have a share approximately % in terms of revenue.

We surveyed the Trade Finance companies, and industry experts on this industry, involving the revenue, demand, product type, recent developments and plans, industry trends, drivers, challenges, obstacles, and potential risks.

Total Market by Segment:

Global Trade Finance Market, by Type, 2017-2022, 2023-2028 ($ millions)

Global Trade Finance Market Segment Percentages, by Type, 2021 (%)

Guarantees

Letters of Credit

Documentary Collection

Supply Chain Financing

Factoring

Global Trade Finance Market, by Application, 2017-2022, 2023-2028 ($ millions)

Global Trade Finance Market Segment Percentages, by Application, 2021 (%)

Machinery

Energy

Food and Consumer

Transport

Chemical

Metals & Non Metallic Minerals

Others

Global Trade Finance Market, By Region and Country, 2017-2022, 2023-2028 ($ Millions)

Global Trade Finance Market Segment Percentages, By Region and Country, 2021 (%)

North America

US

Canada

Mexico

Europe

Germany

France

U.K.

Italy

Russia

Nordic Countries

Benelux

Rest of Europe

Asia

China

Japan

South Korea

Southeast Asia

India

Rest of Asia

South America

Brazil

Argentina

Rest of South America

Middle East & Africa

Turkey

Israel

Saudi Arabia

UAE

Rest of Middle East & Africa

Competitor Analysis

The report also provides analysis of leading market participants including:

Key companies Trade Finance revenues in global market, 2017-2022 (estimated), ($ millions)

Key companies Trade Finance revenues share in global market, 2021 (%)

Further, the report presents profiles of competitors in the market, key players include:

BNP Paribas

Bank of China

Citigroup Inc

China Exim Bank

ICBC

JPMorgan Chase & Co

Mizuho Financial Group

Standard Chartered

MUFG

Sumitomo Mitsui Banking Corporation

Credit Agricole

Commerzbank

HSBC

Riyad Bank

Saudi British Bank

ANZ

EBRD

Japan Exim Bank

Banque Saudi Fransi

Afreximbank

AlAhli Bank

Export-Import Bank of India