Financing Trade and International Supply Chains published

Perhaps surprisingly there are very few good books about international trade finance, and those that are available are somewhat dated. So it comes with considerable relief that Alexander R Malaket has written Financing Trade and International Supply Chains, which is published this month by Gower Publishing in the UK.

This is a very timely publication, as there is an immense need for clarity in the way the financing of international trade has, and continues to change, and indeed a proper discussion surrounding the globalisation of the supply chain and how the financing challenges are being met.

The book is subtitled: ‘Commerce across borders, Finance across frontiers’, and is an essential source of reference for anyone involved in international trade and using or seeking to use short-term financing. Malaket not only provides a thorough and logical insight into how trade and supply chain finance can work for companies today, but also does this through an easy and interesting read. This is a book long overdue, and Malaket has nailed it for users and practitioners alike.

Having known the author – who has over 25 years of experience in investment, financial services and senior level consulting - for many years now, I know he has left no stone unturned in researching and completing this book. The book takes the mystery and complexity out of trade finance. I highly recommend it to all involved in international trade.

The book suggests that every trade or supply chain finance solution - no matter how elaborate - addresses some combination of four elements: facilitation of secure and timely payment, effective mitigation of risk, provision of financing and liquidity, and facilitation of transactional and financial information flow.

The book includes observations on the effective use of traditional mechanisms such as documentary letters of credit, plus an overview of emerging supply chain finance solutions critical to the financing of strategic suppliers and other members of complex supply chain ecosystems. The important role of export credit agencies and international financial institutions is explored, and innovations such as the Bank Payment Obligation (BPO) are addressed in detail. This valuable resource balances concept with practical insight and can help protect the financial interests of companies pursuing opportunity in international markets.

The book’s contents includes: Foreword; International trade: where does financing fit in? The fundamentals of trade finance; Understanding global supply chains; Trade and supply chain finance: the needs of buyers and sellers; Financing trade: selected concepts and traditional solutions; Financing trade: supply chain finance; Engaging effectively with finance providers; Financing in context: trade transaction flow; Export credit agencies, international institutions and non-bank providers; Flexibility of financing: small business, developing markets; Financing, risk and cost: realities of international trade; Trade and supply chain finance: a case study; Looking ahead: trade and supply chain finance tomorrow; and appendices.

For further details: http://www.gowerpublishing.com/isbn/9781409454601

This is what some of the reviewers think: 

‘…very informative, full of useful information and a great read for anyone involved in international trade or trade finance, at any level or angle. A remarkable and very contemporary approach to issues that are currently very hot in international commerce.’ Eduardo Klurfan, chief representative and country head, Cuba,~Bank of Nova Scotia^, Havana, Cuba

‘A very comprehensive description of all relevant aspects all stakeholders in financing trade and international supply chains have certainly waited for.’
Markus Wohlgeschaffen, managing director, global head of trade finance and services, global transaction banking, ~UniCredit^, Munich, Germany.

‘I wish I had a copy of this publication 29 years ago when I commenced my career as it would have provided both an excellent overview and a more in-depth treatment of the trade finance world…’ Maninder Bhandari, founder, partner and managing director, ~The Encore Group^ and ~The Derby Group^, Dubai, UAE.

‘Malaket offers an insightful compendium of facts, figures, practices and case studies that show the reader how the world’s trade finance architecture actually works. His portrayal is thematic, and grounded in theory, but he somehow manages to bring that theory to life. He also captures the evolutionary nature of the system - the fact that we are watching a movie, not examining a snapshot, comes through loud and clear. This book will be required reading for beginners and veterans alike.’ Stephen Poloz, governor of the Bank of Canada, and past president and CEO of ~Export Development Canada^.

‘It is valuable for both newcomers as well as experienced staff working in the arena of international trading. For newcomers it shows the many rules and customs that come with international trading and gives advice; for those who are more experienced it gives information on the latest developments in regard to international supply chains. This book benefits all those working in this field.’
Johan Bergamin, director, trade and commodity finance, ~ING Bank^, Amsterdam, The Netherlands.

Alexander R Malaket