TRADE FINANCE - Payment Methods for Export Sales

This course is of key benefit to Finance, Credit management, International Shipping and Account Management personnel. Also, provide participants with practical knowledge in
the areas of International Methods of payment and Letters of Credit which they will then be able to apply in their business to simplify the process.

Objectives

• To equip participants with the knowledge to under Trade Finance operations 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.

Upon completion of this 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 & Transport documents, Bills of Exchange (Drafts) and other documentary requirements;
• Banking process and compliance requirements for Documentary Credit and Documentary Collection presentations.

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 and disadvantages of documentary credits
• Keywords in documentary credits

Negotiating L/C contracts
• Parties to the contract
• Key Management Responsibilities
• Role of Finance and Credit Management

Documentary Credit Cycle
• Planning and Organising the process
• Application, Issuance, Shipments

Commercial Operations
• Terms and Conditions under L/C's
• L/C applications to Banks

Documents under L/C’s
• Transport Documents
• Commercial Documents

 

More course details (PDF)
(contact us for bookng)