Course Methodology
The course uses a mix of interactive techniques, such as brief
presentations by the consultant, case studies and group exercises to apply
knowledge acquired throughout the course.
Course Objectives
By the end of the course, participants will be able to:
- Understand trade finance fundamentals and best
practices
- Explore banking facilities related to trade
finance
- Better negotiate contracts commercial terms
- Understand and utilize different types of
available letters of credit
- Understand and utilize different types of
available letters of bank guarantee
Target Audience
Financial controllers, procurement professionals, financial
analysts, business development managers, financial
managers, management accountants, business analysts and treasury
professionals.
Target Competencies
- Understanding trade finance
- Negotiating commercial terms
- Securing assets and profitability
- Utilizing trade finance tools to support revenues
- Mitigating trade finance risks
Trade finance
- What is trade finance?
- Exporter and importer conflicting goals
- Risks involved
- Product and manufacturing
- Transport
- Commercial
- Adverse business
- Political
- Currency
- Financial
- Participants in international trade transactions
- Terms of payments
- Critical questions in selecting terms of payment
- Shipping documents
- Shipping terms
- Documentary collection
- Documentary credit
- International trade issues
Banking facilities and services for exporters and importers
- Overdraft facilities
- Negotiation with banks
- Bills advance
- Documents presented
- Factoring
- Loan against imports
- Trust receipt facilities
- Export credit insurance
Contractual relationship between contract parties
- Buyer versus seller
- Applicant versus issuing bank
- Issuing bank versus beneficiary
- Issuing bank, advising bank and beneficiary
- Issuing bank, confirming bank and beneficiary
- Beneficiary versus negotiating bank
Letters of credit
- Transferable credit
- Back to back credit
- Red clause credit
- Revolving credit
- Standby credit
- Accounting treatment
- Disadvantages of the letter of credit
- Letter of credit discrepancies
- Terms of sale and delivery
Letters of bank guarantee
- Tender guarantee
- Advance payment guarantee
- Performance guarantee
- Warranty bond
- Retention guarantee
- Accounting treatment
