How were buisnesses able to finance trade?

Answer 1

In the past as well as the present, one of the main sources of funds required to finance trade was taking out loans from banks. This as an example was the seen in the credit crisis of 1772. In that situation, plantation owners throughout the British empire borrowed funds from London based banks to finance the growth of cotton and tobacco farmlands. As these borrowers extended themselves too far, they were unable to repay loans and several banks failed.

In today's world, bank loans are a key method to financing trade. Other methods are floating bond issues or taking a private company public and selling shares of the newly organized company.

Governments also participate in lending money to finance trade. This is also true of organizations such as the World Bank and the IMF.