Trade Finance , Letters of Credit & Bank Guarantees Training course Event, 13.Jan.2025

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