FOREIGN TRADE FINANCING

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Across
  1. 2. Supplier credit involves the exporter extending credit terms to the buyer, promoting flexibility in international trade financing.
  2. 5. Making a prepayment is the act of settling the cost of goods or services before their actual delivery or completion.
  3. 7. In silent confirmation forfaiting, the exporter remains unaware of the transaction details between the forfeiter and the importer's bank.
  4. 8. Cryptocurrency, a non-traditional financing method, is a digital currency secured by cryptography, enabling secure and decentralized transactions.
  5. 10. of Exchange: The bill of exchange, a financial document, represents an order for payment issued by the exporter to the importer.
  6. 13. of Credit: A letter of credit, issued by a bank, ensures secure payment to the seller upon the successful delivery of goods.
  7. 14. In full recourse factoring, the factor has recourse to the seller for non-payment by the debtor, mitigating financial risks.
  8. 16. Startups often benefit from the financial backing of an angel investor who provides capital in exchange for ownership equity.
  9. 18. Maturity factoring is a financing approach where a factor extends support until the invoice matures.
  10. 19. Political risk, an element of public insurance of export, refers to financial threats arising from political events affecting international trade.
  11. 20. Entrepreneurs often turn to crowdfunding, raising funds online from a diverse group of people to fuel their innovative projects.
Down
  1. 1. Trade credit insurance protects against the risk of non-payment by buyers, enhancing credit management in import trade financing.
  2. 3. Country limit represents the maximum amount of credit exposure an insurer allows for a specific country, managing geopolitical risks.
  3. 4. Venture capital, a non-traditional financing method, injects funds into new or growing businesses with high-risk, high-return potential.
  4. 6. Factoring: In recourse factoring, the seller retains responsibility for bad debts that may arise from the transaction.
  5. 9. The government-established Eximbank provides crucial support for exporters, facilitating international trade financing.
  6. 11. Commercial risk, covered by public insurance, pertains to the potential non-payment due to commercial factors like insolvency or default.
  7. 12. of Credit: A revolving letter of credit automatically renews with ongoing transactions, streamlining import trade financing.
  8. 15. Forfaiting involves selling medium to long-term receivables at a discount, providing immediate cash flow for the exporter.
  9. 17. ECGC, or Export Credit Guarantee Corporation, plays a pivotal role by offering insurance against payment risks in global trade.