Introduction to Legal Trade Finance
​Since the world economy has evolved towards an ever-increasing globalisation, trade finance has acted as a core factor in this process. Indeed, trade finance, as a means to manage and secure the payment of goods, has allowed international trade transactions to extend to a point where they are now an everyday occurrence. To build valuable financial structures, the law underpinning trade and commodity finance is of crucial importance, especially in governing the outcome in relation to any default.
Legal structures in trade finance
A variety of legal structures are provided for the financing of trade transactions, in areas such as asset-based lending and structured finance, of which law firms specialized in trade finance usually deal with.
Regarding these financing structures, a broad spectrum of specialized legal products are available to set up a financial arrangement, including:
| – Borrowing base facilities- Export credit agency financing- Pre-export financing and prepayment facilities- Receivables and supply chain finance- Reserve base lending- Revolving trade facilities- Senior secured facilities- Syndicated facilities- Warehouse loan facilities |
These legal structures are used to finance goods where cashflow or balance sheet would be insufficient, allowing companies to meet their various financial needs.
Trade finance law firms and their role in trade finance
In structuring effective financial arrangements, law firms specialized in trade finance represent the primary experts and representative for businesses. Owing to the complexity of transactions and the increasing competitiveness of the international trade market, companies seek to build financial arrangements which best secure their assets.
With their accurate knowledge and breadth of experience, trade finance law firms offer tailored advice and help companies in providing the most beneficial solutions for the financing of their trade transactions and support their business clients in resolving disputes.
In this regard, following The Legal 500 which highlights the leading lawyers in their field, the main trade finance law firms are listed below:
- Allen & Overy LLP
- Dentons
- Clifford Chance LLP
- Clyde & Co LLP
- HFW
- Hogan Lovells International LLP
- Linklaters LLP
- Norton Rose Fulbright
- Reed Smith LLP
- Simmons & Simmons
- Sullivan & Worcester UK LLP
- White & Case LLP