Financing in International Trade with an Emphasis on Aircraft Purchase Agreement

Aircraft purchase is one of the important projects in firms in which there is no possibility of domestic financing due to large rate of investment required. In this situation, to provide cash for investment, cash for working capital and to ensure more sales of goods, firms tend to focus on external financing. One of the concerns of firms in the world is to provide desirable financial resources. In fact, the main purpose of any kind of economic activity is profitability, and it is not possible without financial resources. Therefore, the issue is that what different types of international financing are in regard with aircraft purchase agreements. In this descriptive-analytical study, it is concluded that financing through documentary credit and promised payments (open account) are among categories of financing in international trade for aircraft purchase. Each of these ways has its own particular circumstance and procedure that will be explained and studied using a legal approach.