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