Payment-in-advance Payment-in-advance is a pre-export trade finance type that involves an advance payment or even full payment from the buyer before the goods or services get delivered. This is risky, and although it can help the supplier in terms of cash flow constraints, it is risky for the buyer in case the goods are not delivered. Advance payment is a popular option, but substantially increases non-payment or credit risk for the supplier. 2. Working capital loans Working capital loans (or business loans) can be used to finance the upfront cost of doing business and can cover anything from the cost of raw materials to the cost of labour. These short-term loans are normally issued on a 6-month tenor.  With secured working capital loans, banks use the company’s assets as a form of security against non-payment. Banks may also issue unsecured business loans for a higher cost. Since this type of loan does not have any assets as collateral is inherently riskier for the bank requiring them to pay a higher fee.