The world economy is changing rapidly with the advancement of globalization, which causes easier and faster connections to international clients, as well as usage of advanced technologies in business. With it, the needs of participants and how certain professions work have also changed. Ten years ago, many economists deemed trade finance a dull profession that required tedious amounts of paperwork. However, trade finance has now been affected by the digitalization of trade which has reduced the piles of paperwork and made trading easier, more dynamic, and attractive. Whether you are a fresh graduate or an economist thinking of heading your business career in this direction, you will benefit from tips on how to use your potential in finance trading and be as competitive as possible in the labor market or more successful in doing your job.
What is Trade Finance?
Trade finance is a set of products and services that enable business deals of corporations engaged in international trade. Trade finance is usually provided by banks that act as intermediaries between two companies and guarantee the collection of trade receivables. During this process, banks provide their clients with access to financial resources and the stipulation of cash flow. The key task is reducing the risk of potential losses. In order to achieve this, banks have a number of financial instruments and products at their disposal. In addition, banks confer with clients to draft contracts that must comply with all national and international rules.
Keep Your Clients Happy
The focus of a finance trader is clients and their expectations. To meet the client’s requirements, you’ll need to be familiar with operating challenges, as well as the tools you’ll need to solve them. The job of a finance trader also carries pressure. It’s a very responsible and dynamic job that often requires teamwork. That is why cooperation between your team members, between your team members, and the client, but also cooperation with the team of the other contracting party are highly important. This implies a high level of communication skills and developed networking. Banks perform hundreds of transactions every day and clients often insist on their affairs being completed within short deadlines. You will need to find the balance and set priorities. The goal is to satisfy your client and gain his trust while complying with the standards and controls of economic transactions. This will require a lot of effort, hard work, and innovative thinking from you and your team.
It’s a long road
It is not easy being visible in the labor market of trade finance. In a global industry such as trade finance, competition among employees is high. If a financial trader is your career goal, you’ll need high education, which means a master’s degree in economics. Finance traders often specialize in international trade and finance. To successfully perform this job, you will also need certain certificates. If you’re at the beginning of your studies, don’t be discouraged by the long journey to the trade finance profession. It usually takes two to three years of active work to become an associate. If you continue to develop your knowledge and show good results in an average of five years, you will be able to manage a smaller team.
The more languages you know, the more you’re worth
Trade finance is an international industry that requires daily communication with people around the globe. Knowing the language of the country which the client you’re doing business with is in contributes to better understanding and more prosperous trade. Being fluent in the business language is also highly recommended. It is useful to know several other languages. Sometimes knowing a certain language is crucial when choosing a job candidate.
Study the laws
Transactions with different countries require compliance with both national and international regulations. Violation of foreign trade laws can bring huge losses to your company in the form of millions of dollars. Therefore, the trade finance team works closely with the legal team in order to provide the most rational solutions and harmonize their tasks and goals. Although you’ll not be a lawyer, you will need to study regulations regarding your client’s deal.
Become a finance trader and discover the world
The nature of a financial trader involves frequent traveling. This will give you the opportunity to visit many countries. Traveling is a good way to meet new people and spread your professional network. Sharing experiences, business customs, and ideas with colleagues from other countries may help you in your future business. Salaries in the trade finance sector can be very high, especially for experts in this field. These factors, as well as the dynamic work environment, make trade finance tempting to many.
Working in trade finance provides many benefits, but it’s also a highly responsible and complex job. Before you start your career as a financial trader, you must acquire knowledge in the field of finance, develop your social skills and try to strengthen your networking. Show initiative in finding solutions to problems that you will encounter during business and your hard work and effort will result in career advancement.