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If you have gained an insight into the SEO world, you would have come across the word “backlinks” several times. For those new to the SEO industry, you might wonder what backlinks are and how essential they are for the success of websites.

In short, a Backlink indicates a link from another site to your website. These are also known as inbound links and their number indicates the popularity of the website. Backlinks are considered as votes by search engines: more the number of votes (backlinks) your website has, and based on the importance of websites linking back to yours, your site is assigned a trust rank.

Backlinks today are an important part of the SEO process because when you build quality backlinks, your website stands a higher chance of getting indexed faster by the search engines. Also, from the long term perspective, it will help in boosting quality traffic to your site. Apart from this, building backlinks serves your bottom-line of website visibility by improving your page ranking and ultimately your ranking in the search engines.

Additionally, it is not just enough to have lots of backlinks, but, it’s also the quality of backlinks that helps in achieving a better ranking in search engines. When calculating the relevance of a website to a particular keyword, search engines usually take into consideration the number of quality backlinks to that website.
Search engines like Google give a lot of importance to websites that contain more number of quality backlinks and also consider those websites as more relevant when compared to others in search results.

A backlink is considered as a quality link if:

a) It links back to your site with the keyword which you are optimizing for.

b) The website linking back to yours has the same theme as your website – this means that when your website contains an inbound link from another site, and that site has content related to your website, this inbound link will be considered as more relevant to your website. However, if this inbound link comes from a site that is totally unrelated to your site content, then it is considered as a less relevant backlink. Therefore, higher the relevancy of backlinks, the greater will be their quality.

For instance, if you have a website about furniture and you receive an inbound link from another website also containing furniture, then this backlink will be considered more relevant and of higher quality when compared to a backlink from a florist website.

Today, search engines watch out for websites that build quality backlinks slowly over time. Though it is quite easy to maneuver links on webpage’s in order to attain a high ranking, it is much tougher to manipulate search engines with inbound links from other sites. This is also one of the reasons for backlinks gaining increased importance in search engine algorithms. Recently, search engines assessment for quality backlinks has become even tougher as there are many webmasters out there who make use of unethical techniques and deceive search engines to attain a higher ranking. These techniques are not only illegitimate but can also lead to your site getting banned.

Lastly, building quality backlinks could be a very time consuming and tedious process requiring a lot of patience, efforts, and also funds. However, it is a crucial step in creating blogs or any website since the quality and relevancy of backlinks can determine the success or failure of the site. Therefore, it is very important that you prioritize this in your SEO activity and hire professional SEO experts to whom you can outsource this task and achieve a better search engine ranking.

Trade finance is the method importers and exporters of commodities and goods use to finance their business. Basically, trade finance has been in existence for many thousands of years – and one can trace the roots of trade finance and structured trade finance right back to the early days of China and the silk route, Mesopotamia and Europe. Trade Finance was around long before Europeans settled in America and long before the world’s stock markets were born!

Today, trade finance is a massive, multi-billion dollar business. As the world trades more and more goods and commodities are bought and sold, so more and more banks and financiers are needed to lend money to finance the purchase and sale of these goods and commodities – right across the global supply chain.

How is trade finance and structured trade finance useful?

Take an example: imagine you are a trader in cocoa beans in Cote d’Ivoire, buying beans locally and selling them to foreign buyers. To make your purchases, you will need to have money to buy the cocoa up-country in Africa, prior to their export. Where will you find money to make these purchases? And supposing you are the international buyer; the shipper, purchasing from cocoa traders all over West Africa – how will you finance your transactions, which at any one time may exceed your cash reserves? What might be supported by your bank who, if they are traditional lenders, will only lend against your balance sheet?

This is where trade finance and structured trade finance is useful – your business can grow and develop if you use the services of a specialist trade finance department who will structure trade finance structures can be tailored to your needs, using the collateral of the goods you are trading, rather than your own balance sheet or other assets.

What is the basis of trade finance and structured trade finance?

Goods and commodities have an underlying value of their own. For example, if cocoa beans are worth many hundreds or even thousands of dollars per tonne, then once a big pile of beans is accumulated in one place; in a warehouse or on a ship, it is worth a lot of money. A bank may lend money against the total value of the beans, minus some amount to take account of price and other risks

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It is the same for every commodity or trade good which is resalable. A bank will make a loan as long as the collateral “adds up” and as long as the bank is comfortable with the way the deal is structured between both the buyer and the seller. Of key importance is that if something goes wrong the bank is able to take possession of the commodities or goods and sell them to realise monies to repay any loan amounts outstanding.

Basically, when we talk of structured trade finance we are talking of deals whereby complex arrangements are put in place to ensure a bank can take possession and sell the underlying capital used for the loan; in this example, the goods and commodities themselves.

Is trade finance complicated?

No. It is a simple business although the structures used in trade finance in more complex deals require a lot of work for all of the parties involved. This is why the total loan amount of a structured trade finance loans must be high enough to warrant the involvement of highly-paid bankers, lawyers and other advisers.

Where can I find out more about trade finance and structured trade finance?

Day Robinson Group has offices in London and New Delhi and is one of the world’s foremost providers of training in the trade finance sector. For more information, you can visit our site at: http:///www.dayrobinson.com or you can contact the author of this article, Dan Day-Robinson at Day Robinson International in the UK (ddr@dayrobinson.com).