Purchase order finance
Purchase order finance gives a seller funds to make and ship a buyer's order, often in stages, and the buyer's payment repays the provider. See who does what, the steps, a worked example and when it fits.
Prepayment finance
In prepayment finance, a buyer pays the producer in advance, with a bank's money or its own, and the producer pays it back with future deliveries. The bank's security is the buyer's rights under the prepaid contract.
Pre-export finance
Pre-export finance pays an exporter before the goods ship. The lender rests on the assigned export contract, the buyer pays the lender directly, and the loan is settled from that payment, with any surplus going to the exporter.
Red clause letter of credit
A red clause letter of credit lets the exporter draw an advance before shipment to make or buy the goods. A bank in the exporter's country pays the advance, the buyer's bank carries it, and the rest is paid on matching documents.
Shipment splits trade finance in two: before it, lenders fund production; after it, they fund the invoice
Pre-shipment finance funds production and rests on the seller's performance; at shipment the security moves to the receivable, and post-shipment tools such as factoring and forfaiting fund the invoice.