• An introduction to international trade and key risks

• The use of trade instruments and documentation to mitigate risk

• The financing of trade transactions

Session 1:

Identifying and managing trade risk

• Buyer, bank and country risk (financial risk of non-payment/delayed payment)

• Control of goods (the importance of documents of title and their control)

• Risk and cost responsibility (Incoterms 2010)

Session 2:

An overview of International Trade Documentation

• Bills of Exchange, Bills of Lading and other documents (Croner)

Session 3:

Risk Ladder

• Overview of methods of payment and related risk implications of each

Session 4:

Letters of Credit

• What a Letter of Credit is and when it should be used

• Overview of the types of Letter of Credit

• The parties to a Letter of Credit

• Sight and term Letters of Credit

• How a Letter of Credit works

• Letter of Credit confirmation/commitment to negotiate

• Retaining control and the fundamentals of getting paid

• Financing Letters of Credit – discount/negotiation

• Common problems and the implications of discrepancies

• Bank charges

• UCP 600

• The Letter of Credit template

• The Letter of Credit checklist

Session 5:

Other documentary methods of payment (when they should be used and how they work)

• Standby Letters of Credit/Bank Guarantees

• Avalised Bills

• Export Collections (Cash against Documents & Documents against Acceptance)

Session 6:

Bank Bonds, Guarantees and Standby Letters of Credit

• What these are and how they work

• The risks and implications of issuing these to your buyer

Course Close