Import finance is the group of banking products that help an importer pay for goods bought from abroad and bridge the time until those goods are sold. It is a branch of trade finance seen from the buyer's side. The bank may give a payment undertaking to the seller on the importer's behalf, most often a letter of credit, or it may lend the importer the money to pay, through an import loan or other trade finance loan that is repaid from the proceeds of sale.
Other forms include deferred payment under a usance letter of credit, the financing of bills presented under an import bill collection, and a shipping guarantee that lets the buyer collect cargo before the documents arrive. The bank relies on the goods and the sale proceeds as its source of repayment, often keeping control over the title documents.