Our International Trade practice brings together an extensive network of finance and banking relationships to help our clients compete successfully around the world.
International trade is expanding throughout the world – between advanced industrial economies, those economies and emerging markets, and within emerging markets. This reflects increasingly close cross-border links between economies, the dissolution of trade barriers, and the recognized benefits of trade.
Madroth helps facilitate and expand international trade by providing businesses with appropriate instruments to support their trading activities. We assist businesses gain access to financial resources by easing creditor’s risk and providing them with the necessary capital and liquidity, to better manage their cash flow, allowing them to expand and grow. We also work with our clients to manage risks associated with international trade transactions, increasing the number of options to reduce or eliminate risks associated with non-payment or payment delays, fluctuations in exchange rates, changes in trade and financial regulations and political unrest.
Trade finance provided by commercial banks, export credit agencies, multilateral development banks, suppliers and purchasers, has grown significantly over the past two decades. Trade accounts for about one half of the gross national income of developing countries, and financing that trade has become increasingly important to a country’s development prospects, as well as to manufacturers of capital goods, machinery and other products increasingly reliant on competitive export markets.
Furthermore, payment terms are increasingly used as a competitive tool during contract negotiation as buyers would generally favor a contract that provides a higher degree of certainty and attractive credit terms. As a result, traders with access to a wide array of trade finance tools and instruments are better equipped to transact their business.
Each structured finance transaction is unique, but key finance components include: