Over 89% of banks say sustainability remains relevant in trade finance, and ICC now defines its product labels
Over 89% of banks in ADB's December 2025 survey say ESG and sustainability remain relevant in trade financing. ICC's December 2025 principles define four product types: green, social, sustainability-linked supply chain finance and sustainability-linked trade finance.
Dynamic discounting lets buyers earn a return on their own cash by paying suppliers early
Dynamic discounting lets a buyer pay suppliers early out of its own cash, at a discount that shrinks as the due date approaches. The US Treasury's public test: take a discount only when its yearly rate beats the value of funds rate.
Longer payment terms hold up when suppliers can get paid early on the buyer's credit
Payables finance lets a supplier on longer payment terms sell its approved invoice early, at a cost typically aligned with the buyer's credit, while the buyer still pays on the original due date.
Payables finance pays suppliers early on the buyer's credit, while the buyer still pays on the original due date
Payables finance is a buyer-led program in which suppliers sell invoices the buyer has approved to a finance provider, at a discount priced on the buyer's credit. The buyer still pays the full invoice on the original due date.
Trade finance protects a shipment, supply chain finance frees the working capital around it
Trade finance reduces the risks of international trade; supply chain finance optimizes the working capital invested in supply chains. Payables finance, its best-known form, lets suppliers sell buyer-approved invoices at a cost aligned with the buyer's credit risk.