Introduction
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
• 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
Course Outline
Day 1
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
Day 2
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
Day 3
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
Day 4
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
Day 5
Letters of bank guarantee
- Tender guarantee
- Advance payment guarantee
- Performance guarantee
- Warranty bond
- Retention guarantee
- Accounting treatment
Credits: 5 credit per day
Course Mode: full-time
Provider: Blackbird Training Centre
