Over the past five years, disruptions ranging from the Covid-19 pandemic and macroeconomic volatility to geopolitical conflicts and supply chain shocks have placed sustained pressure on the global trade ecosystem. Yet through this turbulence, trade finance has not just endured but thrived, with global trade volume reaching a new record of US$33trn in 2024, according to UN Trade & Development.

Growth is expected to continue and – supported by trade finance’s exemplary record of low defaults – its resilience is set to endure. Maintaining this momentum will require commitment, education, and trust, with on-the-ground relationships across offtakers, non-bank financial institutions, and other partners in funding and risk management needing constant nurturing.

“Maintaining this momentum will require commitment, education, and trust”
Atul Jain, Global Co-Head Trade Finance and Lending, Deutsche Bank

Set against this backdrop, this second edition of A Guide to Trade Finance serves as a useful reference guide for the industry, covering the fundamentals of financing cross-border trade in practice.

As part of the update, we have also included a new section on managing trade finance risk and the distribution landscape in the face of increased demand for open account liquidity. And the chapter covering sustainable finance has been revised and updated throughout, to reflect trade finance’s role in directing financial flows towards more sustainable and climate-friendly trade business.

“This second edition of A Guide to Trade Finance serves as a useful reference guide for the industry, covering the fundamentals of financing cross-border trade in practice”
Oliver Resovac, Global Co-Head Trade Finance and Lending, Deutsche Bank

The information is structured into the following twelve chapters, reflecting modern trade finance practices:

1. Introduction to trade finance
2. Transactional trade finance
3. Supply chain finance
4. Natural resources finance
5. Structured trade and export finance, and export credit insurance
6. Development finance
7. Other forms of trade finance provision
8. Managing trade finance risk
9. Payments and foreign exchange
10. Sustainable finance in a trade context
11. Trade finance and its digital evolution
12. Financial crime prevention

We hope you find this Guide a valued reference tool in your trade finance discussions.