The so-called international trade financing refers to the flow and financing of funds in the process of international trade import and export, since it involves funds, it will definitely involve banks, banks have the role of loans, trade intermediaries, exchange between different kinds of currencies, so that banks occupy an indispensable position in the financing of international trade. Financing is a necessary process for the transaction, it can promote better trade, take a variety of effective means to obtain funds for the transaction, so as to achieve the purpose of the transaction.
In international trade, due to the trading activities between countries, import and export taxes and insurance, freight costs and other issues are relatively complex, the time of financing is also relatively long, even though international trade is now a very common phenomenon, but there are still great risks and some unavoidable problems, the existence of such phenomena is not conducive to the development of international trade, in order to make the system of international trade financing In order to make the system of international trade financing more perfect, we have to improve and innovate on the basis of the original foreign trade, strengthen the management of financing, and promote the development of international trade.
2 The importance of international trade financing
2.1 Promote the development of international trade
International trade financing can help foreign trade work more smoothly and promote the development of international trade. Financing is mainly realized through the circulation of funds between different currencies, helping the exchange and cooperation between national economies and enhancing diplomatic and commercial relations. Funds are the basis of trade and commerce, and the main purpose of financing business is to raise and circulate funds, and only when financing can be carried out and completed in a timely manner can the smooth completion of international trade be ensured. The financing of international trade is generally carried out through banks, and it has various forms, such as bills of exchange, cashier’s checks, checks and collections, etc.
When enterprises in the process of import and export trade, in the financial difficulties and problems, you can take more appropriate means to borrow funds through the form of bank financing, in order to help the trade work better. Therefore, international trade finance has the role of promoting the development of international trade, to solve the problems in terms of capital, to ensure the smooth conduct of trade.
2.2 Promote the development of banks
Since international trade financing is inseparable from the powerful monetary institutions – banks, so banks and international trade financing play a complementary role, banks to promote the development of international trade, but at the same time the financing of international trade business also brings huge benefits for banks. In the enterprise to raise funds and other business loans, will pay the bank the corresponding profits, to promote the development of banks, while a large number of capital flows can strengthen the circulation between the currency, the value of our currency also played a great help.
And import and export trade is a certain risk, both the buyer and the supplier will be in the trade to buy insurance, the banking industry to play the role of insurance intermediaries, to prevent the occurrence of accidents to bring protection, the business will also bring a huge profit to the bank. Nowadays, international trade is developing faster and faster, and the relationship between financing and banks is closer, and the financing business of international trade will provide great help to the development of banks.
2.3 Promote the development of the economy
The total value of profits generated by international trade exports occupies a large part of our economic sources and has become an indispensable business in our economic development. International trade can enhance economic exchanges between countries and promote economic development, and the large amount of capital circulation can prevent and alleviate economic crises and contribute to the good functioning of the macro economy. The international market is originally a powerful economic system, precisely because the development of international trade between countries to promote the circulation and operation of the global economy, while the state trade financing is the main means of capital circulation, and therefore conducive to promoting economic development, but also to enhance the international status of China.
3 Innovative strategies for international trade financing business
3.1 Improve the system of international trade financing
The operation of international trade needs to have a good system system as the basis, so we should analyze the current situation of international trade, improve the system system on the original basis, and promote the good development of foreign trade business. No matter what business, all the working principles should be based on integrity, and only by doing business in good faith can we ensure the good development of trade.
So in the financing system of international trade to increase the penalty for violators of the breach of contract, to eliminate the emergence of bad credit phenomenon, to create a good atmosphere of good faith business for international trade. In the system must be done to distinguish their responsibilities and obligations, to avoid ambiguous responsibilities in the process of trading, resulting in disputes between the two sides, so that trade can not be carried out normally, the two sides will have a negative impact on cooperation, and even cause property losses.
Therefore, in the decision of innovative international trade financing business, it must be based on a perfect system of systems to create a good trading environment to ensure that business is carried out as scheduled.
3.2 Strengthen the awareness of insurance security in international trade
There is a transaction must be the existence of risk, there is nothing in the world to ensure that everything is foolproof, international trade is the same, so in the process of trade, we must buy insurance to strengthen the protection against accidents. International trade is generally based on sea, land and air transportation, and in the process of transportation will be affected by unexpected conditions, bad weather or natural hazards, when the accident occurs, the loss of property can be a fatal blow to the enterprise, making it difficult to finance and threatening the lives of employees. The purchase of insurance can play a role in sharing the losses caused by the accident, reducing the economic pressure of the enterprise, taking responsibility for the accident and playing the role of insurance. Therefore, in international trade, we must strengthen the awareness of security to prevent accidents, and to be proactive, to develop a response plan for unexpected situations.
3.3 Diversification of trade products
Although the development trend of China’s economy and trade is good, but the trade products are relatively single, the foreign trade market is relatively small, and the scope in financing is not wide enough. Therefore, we should enhance the diversification of trade products, expand the types of transactions and markets, push some goods with national cultural characteristics to the international market and sell goods of foreign cultures in the mainland, which is also conducive to cultural intermingling, propaganda and development among countries and promote the exchange in terms of life differences. Diversification of trade products will bring about a larger trade market and be able to make greater profits in business, bringing convenience to the financing of international trade.
3.4 Strengthen the training of financing business talents
A good foreign trade enterprise needs not only an excellent leader, but also an excellent working team and professional skills. The import and export business of international trade is relatively tedious and important, to ensure the avoidance of errors in the work, the professional skills of the staff is a great test. Strengthening the training of staff in international trade financing business can enable them to play their professional skills under the conditions of capital vacancy or turnover, to communicate and ensure various business to the bank, to help finance as soon as possible to complete, to solve the problem of capital.
At the same time, the training of financing talents can avoid detours in business, find the key points of problems in a short time, solve them in time, make the business concise and orderly, and thus facilitate the work. Therefore, excellent financing talents are very important for enterprises, and we should regularly train our employees to deepen their economic knowledge in national trade financing and create business talents to bring benefits to enterprises and the country.
International trade holds up the country’s economic system, and the financing business provides a trading platform for the flow of funds. To promote the development of the economy it is necessary to vigorously promote the international trade.
In the current social context, the status quo of international trade in China is still very considerable, but we can not stop there, still need to build on the good international trade foundation. The financing of international trade occupies an important position in the economic development, how to improve the implementation of financing business is the primary task of contemporary foreign trade, so in order to the development of the country’s economic strength, we need deeper research and innovation in international trade, to promote our country to take a new step in the international arena.