Cross-Border Financing

Any financial arrangement that originates in one country for the benefit of someone in another country is known as cross-border financing.

It can include loans, letters of credit, and bank acceptances. International banks make it easier for companies to finance their various operations in different countries.

Why is it called out separately? Like...why is this term even a thing?

Because laws, and the collection of money, are different in different countries. So are tax and transaction costs. And, generally speaking, a lot more risk is called in when loaning money outside of your own country.

Imagine loaning money to an Arab country where Sharia laws exist which prohibit the collection of interest on loans. Yeah. Good luck collecting.