Lapasar
Finance & Payments

Trade Financing

Also known as: Trade finance

Trade financing is the range of financial products that help businesses fund the gap between buying goods and getting paid, easing cash flow across the supply chain.

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Trade financing includes instruments such as trade credit, invoice financing, letters of credit and supply-chain finance. All address the same challenge: businesses often must pay for goods well before they receive payment from their own customers, creating a cash-flow gap that financing bridges.

For B2B buyers, accessible trade financing means being able to purchase what the business needs without straining cash. Marketplaces increasingly embed financing — offering approved buyers credit terms across their purchases so financing and buying happen in one place.

Frequently asked questions

What is trade financing?
Trade financing is the set of financial products — trade credit, invoice financing, letters of credit, supply-chain finance — that fund the gap between paying for goods and getting paid for them.
How does trade financing help buyers?
It lets businesses buy what they need without tying up cash, bridging the gap until their own revenue arrives and supporting growth.

Go deeper

B2B trade financing & credit terms

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