Trade Finance Essentials

Understanding the basic principles of Trade Finance has become imperative for banking professionals as Financial Institutions increasing place emphasis in this area due to the low interest margin environment and reducing income from other operations such as payments.

On the other end, trading and other companies’ executives, procurement and purchasing departments officers and industry consultants must have a sound understanding of Trade Finance in order to negotiate with their suppliers, clients and bankers the best method of payment for each deal.

This introductory course will give the participants the opportunity to grasp and discuss the basics of Trade Finance products from a practical point of view with an industry specialist.

Objective   

Participants can expect to develop a good foundational understanding of the main Trade Finance products (namely Bills for Collection, Letters of Credit, Standby Letters of Credit and Letters of Guarantee), how they operate, what are the associated risks to each party and how to choose the most suitable method of payment. An overview of the International Commercial Rules (Incoterms 2010) will also be delivered.

Course Content

• What is Trade Finance?
• Incoterms 2010 – an overview
• The 5 methods of payment; how to select the most suitable
• The basics of the main Trade Finance Products:
• Bills for Collection
• Documentary Bills for Collection
• Clean Bills for Collection
• Letters of Guarantee
• Direct Guarantees
• Indirect Guarantees (Counter Guarantees)
• Letters of Credit
• Confirmed Letters of Credit
• Transferable Letters of Credit
• Back to back Letters of Credit
• Standby Letters of Credit

Who should attend

• Banking professionals, such as:
• Relationship Managers
• Internal Audit Department Executives
• Compliance Specialists
• Risk Officers
• Trading and other Companies’ officers, such as:
• Chief Financial Officers and Chief Accountants
• Procurement and Purchasing Dept Officers
• Business Introducers
• Auditors and Accounts
• Lawyers