Trade Finance: Focuses on transactions in international trade and provides the exporter with receivable or payment guarantees, minimising the risk of non-payment by the importer. It often involves letters of credit, export credit, and insurance against political and commercial risks. Trade finance ensures that exporters receive timely payments and importers receive their goods.

Supplier Finance: You purchase goods from a supplier and approves the invoice for payment on standard credit terms (e.g., 60 days). The supplier can then choose to sell this invoice to a financier at a discount and receive earlier payment. The buyer settles the invoice directly with the financier at the end of the credit period.