Study On Banking Trade Finance Of Foreign Trade Enterprises

China has been keeping a strong economic development tendence after entering into WTO and with further reforming and the more opening outward, The development of foreign trade , which is one of the three promoting coaches (the other two are fitted assets investment and internal consumption), is becoming more notable year by year. Based on the record of 1.42 trillion USD in 2004, the amount of country's foreign trade in 2006 reaches 1.76 trillion USD. Our China's has become one of the greatest countries in world trade, jumps to No. 3 in the world. It is well known that the development of international trade significantly contributes to the national economy growth, however, many foreign trade enterprises are facing several problems, such as competitive and complicated world trade environment, fund shortage, foreign exchange fluctuation risks, less profit and etc. The fund shortage turns into the bottleneck of the development of foreign trade enterprises especially for those of small and medium size , It becomes the most urgent problem should be solved without delay. Therefore, the exploration and studying on effective methods, which enable foreign trade enterprises acquire fund supports from banks easily, is of great practical significance.With methods combining theories with practice, we firstly analyze the importance of trade finance to the development of foreign trade enterprises, describing the theory and development. Secondly, based on the introduction of the theory and development history of foreign trade finance, we compares the characteristics of different trade financing products, making deep analysis on the risks of trade finance, discussing the ways on how to control the subject risks. Finally, we gives foreign trade enterprises some strategic advices on how to acquire trade finance support from banks effectively.We accept the fact that that foreign trade finance has become an the important channel to get funds for foreign trade enterprises. However, there is great difference regarding trade finance between foreign trade enterprise and banks. In order to reach a consensus between them, the government, banks and foreign trade enterprises must do their best on each side, so that banks can develop the business of the trade finance, foreign trade enterprises can make full use of trade finance to improve fund shortage and further develop, and as a result, it can promote our country's foreign trade to a higher level.