Trade finance in plain English

International trade always runs into the same mismatch. The seller needs money now, the buyer wants the goods before paying. Someone has to close the gap. Trade finance is the umbrella term for the instruments that do it: short-term credit, guarantees, insurance.

The simplest instrument is a short-term loan against a specific deal: buy the goods, pay the supplier. The line is usually tied to deals, repaid as they close, and priced off the counterparty and the corridor. Dash provides up to $100,000 without collateral in 24 hours.

Factoring is the sale of a receivable. Deferral is letting the buyer pay later. Different instruments, same job: the exporter needs money today, the buyer can only pay in 30–90 days. With Dash deferral, the exporter is paid at shipment and the buyer pays Dash on the original terms.

Working capital fits the importer who needs to pay the supplier before the goods arrive. Deferral and factoring fit the exporter whose buyer wants 60 days and won't accept other terms. A mature finance team uses both — on different deals or at different points in the cycle.

Ask for the all-in cost as an annual rate. Clarify recourse: who is on the hook if the buyer doesn't pay. Ask what happens if the deal falls apart, and how quickly the partner can turn around the next one. The best partner is the one who answers all three in plain language.