Trade finance refers to the financial activities and instruments used to facilitate international trade transactions. It involves providing funding, risk mitigation, and services to support the buying and selling of goods and services across borders. Trade finance includes various financial products and services such as letters of credit, trade credit insurance, export financing, import financing, documentary collections, and trade finance loans. These instruments help mitigate the risks associated with international trade, such as currency fluctuations, payment defaults, and political instability, while also providing liquidity to exporters and importers. Overall, trade finance plays a crucial role in facilitating global commerce and promoting economic growth by enabling businesses to engage in international trade more efficiently and securely.