Leasing as a method of lending to foreign economic activity

Leasing is a long-term rental of machinery and equipment, vehicles, a way to finance investments, alternative to bank lending, and boost sales. This form of lending has been used since the 50s. In the 60-70s, multinational leasing companies arose. Such companies provide companies with equipment, ships, aircraft, etc. for rent for a period of 3 […]

Forfaiting as a method of lending to foreign economic activity

The emergence of the forfaiting market is determined by changes in the structure of the global economy that occurred in the late 50s and early 60s, when the market for the seller of manufactured goods was gradually transformed into the market for the buyer of these goods. The significant development of international trade was accompanied […]

Factoring as a method of lending to foreign economic activity

Factoring is a type of trade and intermediary operation combined with lending to the client’s working capital, and represents the purchase by a specialized company (special department of the bank) of the exporter’s monetary claims against the importer, followed by collection. Factoring is based on “discounting invoices”, i.e. purchase by a factoring company of customer […]

Corporate and bank loans as forms of lending to foreign trade

A company (commercial) loan is a credit relationship, the subjects of which are firms. In this case, payment is made before or after receipt of documents of title. In the first case, the lender is an importer who issues an advance (100% prepayment) to the exporter, but does not yet have documents of title and […]

The content of the international loan

International credit is a loan capital movement in the MEO sector related to the provision of foreign exchange and commodity resources on an urgent, repayable and interest basis. An international loan arose as one of the levers of the initial accumulation of capital. The basis of its development was the output of production beyond the […]