Other types of Business Finance. There are other types of trade finance which we think would be useful for SMEs to know about, which aren’t strictly ‘trade finance’ as we define, but it’s worth considering. Equity finance includes seed funding, angel investment, crowdfunding, venture capital (VC) funding and floatation. Trade finance covers different types of activities including issuing letters of credit, lending, forfaiting, export credit and financing, and factoring. The trade financing process involves several different parties, including the buyer and seller, the trade financier, export credit agencies, and insurers. Trade finance relates to the process of financing certain activities related to commerce and international trade. Trade finance includes such activities as lending, issuing letters of credit