Trade Finance Payments & Letters of Credit
Significant changes have been introduced under new International Chamber of Commerce (ICC) rules UCP 600, governing Letter of Credit Contracts, plus update to ISBP. International Banks are also taking a hard line with certain Middle Eastern countries, where Export Edge has assisted in resolving major issues for our clients over the last 16 years.
OBJECTIVES
• To equip participants with the updated knowledge for Trade Finance operations for their company in an informed and effective manner;
• To equip participants with knowledge of essential banking payment processes that will enable their companies to exploit higher risk markets;
• To reduce complexity and time consumption on complicated banking issues;
• To increase participant’s process efficiency through minimising discrepancies on presentations to banks for payment;
• To utilize new process improvements for operational efficiency.
Upon completion of the course, participants will be able to understand:
• The structure and format of a letter of credit (L/C) and the relationships between L/Cs and the main documents, for example: Commercial and Transport documents, Bills of Exchange (Drafts) and other documentary requirements;
• Banking process and compliance requirements for Documentary Credit and Documentary Collection presentations.
COURSE BENEFIT ASSURANCE
A detailed review of your customs and trade issues will take place with a pre-course questionnaire review followed by ongoing technical customs support for one month after the course.
COURSE OUTLINE
Financial Risks inherent to Exporting
The Currency Market and Exchange Rates
• Exchange Risk
• Forward Exchange Contracts
Credit Risk Management and payment analysis
• In advance, Banking or Open account terms
• Export Credit Insurance
• Guarantees
International Payment Criteria
• Clean Collections / Bills of Exchange
• Documentary Collections
• Documentary Letters of Credit
• Types of documentary credits
Letters of Credit (L/C’s)
• Understanding the Process
• Advantages / disadvantages of documentary credits
• Key terms in Documentary Credits
Negotiating L/C contracts
• Parties to the contract
• Key Management Responsibilities
• Role of Finance and Credit Management
Commercial Operations
• Customer Relationships
• Terms and Conditions under L/C’s
• L/C applications to Banks
Documents under L/C’s
• Transport Documents
• Commercial Documents
Documentary Credit Cycle
• Planning and Organising the process
• Application, Issuance, Shipments
• Presentations and Settlement
UCP 600 & ISBP 681 rules
• Documentary Credit conditions explained
• Practical application of UCP
Variations in Documentary Credits
• Functioning of the Documentary Credits
• Confirmations to L/C’s
• Transferable Credits
• Back to Back Credits
• Revolving Credits
• Making use of SWIFT Banking formats
In Practice
• Management of functional roles
• Communications internally and with third parties
• Forms of verbal and written communication
• Verification of Documentation
• Effective document generation
• Case studies
Procedures and Systems to improve process efficiency
• Operating Procedures & Progress check lists
• Problem Solving
• Managing Deadlines and Critical Timescales
• Measuring Financial Performance
For more details see pdf below. Please contact us for bookings.
