I) Traditional Tools / Instruments The traditional products and services offered by the financial institutions are typically documented and deal with short-term transactions. Some of which are: Documentary Collection; under which banks (Remitting bank, Presenting and Collecting bank) are instructed by the seller (Drawer) to deliver the presented documents, whether financial documents or commercial documents, to the buyer (Drawee) against fulfillment of payment conditions mentioned by the seller in accordance to the agreement between him and the buyer under the contract related to the said trade transaction . Banks are not allowed to release documents to drawee unless the payment and delivery conditions specified by the seller have been fulfilled. If any bank involved in the chain of delivery of documents have not followed the instructions given will face the risk of payment of documents amount from his own funds. Under collections, there is a difference between financial and commercial documents. Financial documents can be; Bill of Exchange (Draft), promissory notes, checks or the like. Commercial documents may include; invoices, transport document, packing lists, certificates and other documents, commercial documents may or may not include the financial documents. Generally, under documentary collections there are several benefits for both sellers and buyers. The main benefits are comprised of; saving of time consumed in handling between the involved parties and low banking commissions. On the other hand, there is a high risk involved, especially for sellers as they will not be in a position of having the full assurance that the documents will be picked up by the buyer from their banks as there is no obligations on the buyer's or their banks to accept and pay the amount of the presented documents. Letters of Credit (Documentary Credits); are the most commonly and frequently used instrument as a trade finance tool. Letters of credit are bank undertakings under which payment is conditioned by the presentation of complied documents, specifically those required and mentioned in the context of the letter of credit itself. Worth mentioning that payment against complied documents is the commitment of the buyer's bank (the issuing bank) regardless the relationship between the buyer (the applicant) and his bank (the issuing bank) .The letter of credit is a tool that is particularly suitable for the trade transactions under which the level of trust between the seller and the buyer is at the minimum level. It is important to highlight that unlike the documentary collection, banks guarantee payments via the letter of credit, as their authority doesn’t stand on just being channel of documents. Meanwhile, the documentary collections used when the exporter doesn’t have any doubts about the importer’s capability to meet his payment’s obligations, in a risk reduced environment. Letters of Guarantee; is a tool similar to the letter of credit in their nature as being bank undertaking, as it is a written undertaking issue by the guarantor bank to pay a specific amount of money to the beneficiary, in case the principal (the applicant) breached his contractual obligations defaults. The difference between the bank guarantee and the letter of credit is that the former is usually used in a much riskier environment than the later. In addition to that, letters of credit usually include lots of documents, meanwhile, letters of guarantee paid only against presentation of just a demand for payment. Finally, letters of guarantee usually paid in case of default meanwhile letters of credit are paid against of fulfillment of all obligations and terms and conditions mentioned. Forfaiting; is the sale of receivables from exporters to a third party (called a forfeiter) for an immediate payment of these future due obligations at a discount. Usually, forfaiting deals are conducted on a without recourse basis. As a result, the forfeiter takes on all the risks associated with the receivables for the margin he earns.