Foreign trade finance, credits and properties of foreign trade finance, extension efficiency of institutions which provide those credits

One of the best important way of increasing prosperity and ecomic development of a country is to provide the foreign exchange reserves. Foreign trade is one of the best way of doing it. Todays, foreign trade companies are in a high intensive competition, Its main reason is globalisation and fast moving technology. With advancing technology, people from different countries trade with each other without changing their places. To be successful, companies must create a competitive advantage for themselves and they also should have a good finance situation.Todays, foreign trade companies meet their finance requirements with cash and non cash loans during ther transactions. Confirmed letter of credit, letter of guarantee, extrenal guarantee and counterguarantee are some kinds of non-cash loans. Internal trade bank credits easpecially Turkish Eximbank credits, pre-finance which is taken by importers, business and investment credits are some of kinds of cash credits.Type of credits are determined according to need of importers and exporters. Importers determine type of credit according to goods which will be imported and exporters determines type of credit according to payment status of inputs to buy them cheap as soon as possible.In this study, we investigate type of foreign trade credits, how companies reach those credits, characteristics and cost of them, and problems encountered when using them.