There are different uses of framework participation agreements, most often related to trade finance. Some of these uses are discussed below: trade finance is different from traditional financing or credit issuance. General financing is used to manage solvency or liquidity, but trade finance is not necessarily called upon to point to a buyer`s lack of resources or liquidity. Instead, trade finance can be used to protect against the unique inherent risks of international trade, such as currency fluctuations, political instability, non-payment, or the solvency of one of the parties involved. Trade finance can help reduce global trade risk by balancing the different needs of an exporter and an importer. Ideally, an exporter would prefer the importer to pay in advance for an export shipment to avoid the risk of the importer taking over the shipment but refusing to pay for the goods. However, if the importer pays the exporter in advance, the exporter may accept the payment but refuse to ship the goods. There are many parties involved in trade finance and can understand that without trade finance, a company could be late in payments and lose a major customer or supplier that could have a long-term impact on the business. Options such as revolving credit facilities and property factoring can not only help businesses in international transactions, but also help them in times of financial hardship. In the case of risk participation, the creditor sells an economic stake in the loan agreements to a participant that entitles the participant to an economic advantage resulting from the loan agreement between the lender and a borrower. . .