FINANCING OF INTERNATIONAL TRANSACTIONS

Radu Nicolae Baluna and Daniel Goagara
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Radu Nicolae Baluna: UNIVERSITY OF CRAIOVA, FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION
Daniel Goagara: UNIVERSITY OF CRAIOVA, FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION

Annals - Economy Series, 2013, vol. 1, 136-140

Abstract: Financing (funding) is essentially the purchase of funds necessary for a business. This can be done from internal sources (company’s own funds) or external (borrowed funds). The high value of goods traded in international trade makes revenues generated from internal resources not sufficient to settle the value of the goods. Thus, it is frequent to resort to borrowed funds. In International Business Transactions, external financing is done both by classical techniques of credit (credit supplier and buyer credit) and modern techniques of financing (factoring, forfeiting, leasing) all trade tailored. In terms of the length of financing, accounting funding is short-term (1-12 months) and long-term financing (over a year). In principle, export and import operations prevailing short-term financing techniques, while international investment and industrial cooperation actions are specific long-term funding.

Keywords: foreign trade; financing; loan; repayment (search for similar items in EconPapers)
Date: 2013
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