"Trade Credit and Financial Instruments" delves into the crucial role of trade credits in both domestic and international transactions. We highlight how trade credits support economic growth, particularly in advanced economies recovering from the global financial crisis. The volatility observed in global trade data is often driven by diverse motivations for trade credit, making it vital for supply chain coordination.
We explore various trade credit financing solutions, including products and services offered by financial intermediaries and market instruments. The emergence of new financial services technology has introduced innovative intermediate solutions. For financiers, trade credit is an attractive option, but understanding potential risks, such as default and dilution, is essential. Our book provides a comprehensive analysis of the different types of markets, instruments, and risks associated with trade credit in global supply chains, offering practical insights for managers.