What is the major difference between Trade Finance and Finance?

Trade finace is nothing but which is the finace used in day to day business purpose and Finace is used for long term activities of abusiness.

The basic differences relate to the intertemporal nature of financial trades and to the potential for asymmetric information to eliminate trade gains. Asset trade inherently involves commitment – the commitment to pay on a later date. Payment in reality is therefore always contingent, and the circumstances of contingency can depend on information known to only one party to the deal. Thus, financial transactions inherently must allow for the asymmetric-information distortions that we call moral hazard and adverse selection. These distortions reduce the gains from asset trade that would otherwise be available – even with an efficient and impartial judicial enforcement system.

As is well appreciated, government guarantees aimed at mitigating the redistributive effects of financial crises can, in fact, worsen moral hazard and raise the probability of eventual crises.

Again, the difference compared to goods markets is a matter of degree. A consumer durable yields returns over time, it may be known to the seller to be a “lemon,” yet an unconditional service contract may leave the owner with insufficient incentives to operate the durable good appropriately. But there is no doubt that commitment and informational problems are by far most severe, and have the widest systemic ramifications, in the financial market setting.

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"Trade Finance": is mainly concerned only with the funding of the "Trade Cycle Gap" i.e. the "Net Working Capital", which equal "Current Assets - Current Liabilities", of the organization.

Whereas, 

"Finance": is concerned with the funding of all aspects of financial requirements of the organization's activities..

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