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Definition
Trade finance funds the front of the buy-sell cycle: it pays your supplier so you can buy or import goods to fulfil an order, and is repaid when you sell them. It spans purchase order finance and import finance, and suits importers, wholesalers and manufacturers whose cash is tied up in stock they must buy before they can sell.
It pairs naturally with invoice finance, which funds the back of the cycle. See trade vs invoice finance and the trade finance guide.
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