International Trade Finance Essay Example | Topics and Well Written Essays - 2500 words

International Trade Finance - Essay Example This report looks into various aspects of international trade finance in relation to Stainless Cookware Ltd. The report will first analyse import/inward documents against payment collection in international trade since the company also engages in inward trade that requires inward financing and documentation. The report will also identify an appropriate banking product that Mr. Gupta, the director of the company can use to finance imports. The Incoterm that is currently used in the Saudi contract will also be evaluated, and recommendation will be given on whether another alternative may be used. Furthermore, the report will highlight how else the bank may protect the company. Advantages of invoicing using the USD will also be discussed while at the same time providing the three quotes alongside their sterling equivalent. This will demonstrate a deep application of international finance in the case study. There are also some documentation and other e-commerce financial aspects that can be used in international trade. Methods of payment in international trade will further be analysed. The Stainless Steel Cookware records its imports on documents against payment (DP) collection. The DP mechanism involves the release of import documents upon payment by the buyer. It is a crucial method of payment in international transactions which can enhance faster and effective payment for Stainless Steel Cookware. In this mechanism, the exporter asks the bank to present shipping and title documents to the importer only when he pays for the bill of exchange or draft. This is cash against documents, and it ensures that the importer pays for the goods as he takes possession of them (Carr & Stone, 2013). DP is therefore an effective method of payment for Stainless Steel Cookware because it ensures that the importers of its goods pay for their imports as