(1) International trade financing funds are unevenly distributed among banks of different natures. Commercial banks are one of the banks that provide financing for international trade. The second is policy banks. In comparison, state-owned commercial banks have strong funds, but most of what they do is short-term, highly liquid, and small-amount trade financing; as for policy banks, due to the strong support of the state, the risks are borne by the state. We can do medium and long-term trade financing. Therefore, there is a structural imbalance in the sources of funds for international trade financing.
(2) The difficulty of guarantee is still one of the main factors restricting the development of international trade financing. It is understood that since the asset-liability ratio of foreign trade companies is generally high, most foreign trade companies are required to provide corresponding guarantees when handling trade financing, even if they are within the scope of the credit limit. Foreign trade companies generally have the problem that there are not many assets available for mortgage and it is difficult to find units that can provide guarantees. The guarantee conditions are difficult to meet bank requirements. Therefore, the difficulty of guarantee is one of the main problems that foreign trade companies face when handling international trade financing.
(3) The financing method is simple and the financing objects are concentrated. At present, the business handled by domestic banks is mainly based on traditional trade financing methods, such as export packaging loans, import and export bills, etc., accounting for about 70% of the total trade financing; while the relatively complex factoring, welfare fees, etc. Forfaiting is a non-recourse trade financing method. For foreign trade companies, it can ensure the safety of accounts receivable, accelerate capital turnover, and effectively prevent credit risks, exchange rate risks and interest rates. It carries no risk and does not occupy the enterprise's credit line. However, banks currently do not develop this business enough and the business volume is extremely limited, making it difficult to meet the needs of enterprises.
From the perspective of financing objects, it is mainly concentrated in large foreign trade enterprises. These enterprises have strong international competitiveness, stable business development, and excellent asset quality. They are the main financing targets of various banks. For the majority of small and medium-sized enterprises, additional conditions are often set, which is not conducive for small and medium-sized enterprises to apply for international trade financing loans.
(4) There are many approval procedures and the operation process is not smooth. Many companies reported this. The procedures required to apply for international trade financing are complicated, complex, long processing period, and low efficiency, which greatly increase the operating costs of enterprises and bring great inconvenience to the business. For example, some banks equate the business approval of international trade financing with general working capital loans, ignoring the business characteristics of trade financing and lacking a set of fast and efficient approval methods that meet its characteristics. Sometimes there is even an embarrassing situation where the payment has been recovered but the financing application has not been approved.
(5) Lack of effective international trade financing risk prevention measures. The characteristics of international trade financing determine that the risks involved are relatively complex, but they can be predicted and prevented. However, scientific and effective prediction methods and preventive measures have not been specifically applied in enterprises. For example, for credit risk. The traditional and untargeted 5C method is still used, which does not take into account the new characteristics of international trade financing and the situation that is different from general loans; in terms of country risks, its assessment and prediction methods are not very scientific.
(6) my country's international trade financing transactions have caused legal disputes with other countries in the world. International trade financing has gradually formed a set of standardized international conventions and common practices from a traditional financing method. However, in our country, there are situations that are incompatible or even conflict with international conventions and common practices. Incidents of illegal operations occur from time to time, and legal disputes continue.
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