Our trade finance offer is closely aligned to our cash management and foreign exchange services and normally involve elements of the following:
- Assessing the credit risk and agreeing credit limits
- Pricing and approvals for client risk or third party payment risk
- Assessing operational, processing and issuance capabilities
- Ensuring product and system capabilities match the clients' precise needs
Trade finance helps clients to meet their financial obligations and support their working capital requirements. It helps manage the impacts their international or domestic trade activities have on their counterparty payment risk, political or country risk, liquidity and balance sheet.
It can also be used to access foreign exchange services, to hedge against risks, fund increase sales, access new markets or create efficiencies in trade processing operations.
Trade finance can help companies who purchase, manufacture, store, trade, supply or sell goods and services. Typically, this will be international but it may also apply to domestic transactions.
They may be looking to:
- Extract value from their working capital cycle
- Meet longer payment terms from their buyers
- Extend their payables or for counterparty risk management
- Have project or transactional related bond and guarantee requirements
- Source from or sell into MUFG's key markets in Japan, Asia, Middle East and the US
- Consolidate their transaction banking providers
Businesses that benefit from trade finance may be in commodities, natural resources, autos, machinery and equipment manufacturers, industrials, transport, retail, telecoms and the electronics sectors.
First MUFG trade using blockchain to mitigate fraud for commodity trade finance transactions