Why Guarantees — Not Loans — Will Define the Next Decade of Trade Finance 1 Traditional lending was designed for stable markets and predictable cash flows—not today’s volatile, fragmented global trade environment. 2 Loans increase leverage and balance-sheet exposure, often without improving execution certainty. 3 Trade today fails less from lack of funding and more from execution risk, counterparty risk, and compliance friction. 4 Guarantees and Standby Letters of Credit (SBLCs) directly address