Documentary Letters of Credit Course

Location: Available Globally

Dates: Open date - Open date

Duration: -

Price: GBP

This practical three day course considers the use, implementation and practical applications of documentary letters of credits (LC’s) in their many forms and guises. Like predictions of the “cashless” society, the impending death of documentary credits continues to be postponed despite the all conquering popularity of the account method of trading. There are many territories where LC’s are at the core of trading operations for a host of reasons, not just risk transference. Much of International Trade, including LC’s, is either misunderstood or undervalued mainly because the terminology and practices seem difficult and confusing to master. This course will completely de-bunk this misconception and will leave delegates with a clear and working knowledge of how LC trade is undertaken, what actually happens and what are the implications for all. Using numerous case studies and considerable interactive class discussions, the Director will encourage delegates to question and test their knowledge at each stage of the course. At the end, all delegates will have a clear and full understanding of exactly how LC trade takes place across the globe at almost every level. At the end of the course participants will be able to: Understand the fundamental basis and importance of LC’s. Differentiate between the various methods of payment Appreciate the risks/rewards for each party in all transactions Know the difference between the various types of LC Understand the basic terms of trade and their relevance and importance Consider how and why various deals are structured as they usually are Appreciate the significance of international conventions such as Incoterms and UCP Appreciate the role of international export agencies Identify the most suitable means of short, medium and long term funding Explain why comparative and absolute advantage are key components in contract negotiations Appreciate that underlying every transaction is a genuine desire between the buyer and seller to do business with each other. Methodology: Classroom lectures and intensive hands-on practical workshop sessions including detailed exercises. The director particularly welcomes interactive discussions with the delegates and is able and willing to customise the course content, where necessary to meet delegate’s actual and operational needs. Delegates are free to bring their own cases/examples to the sessions. Level of Preparedness: Basic knowledge of finance and commerce ATTENDEES: Corporate and Commercial Bankers Risk Managers Trade Finance Specialists Trade Operations Staff Trade Managers or Division Executives Anyone Dealing with international Trade Course categories:Accounting & Finance Inhouse, Treasury Inhouse
COVERED TOPICS

OVERVIEW OF TRADE FINANCE Principles of trade finance Parties to a transaction Roles, obligations, interests BANKS IN TRADE FINANCE Core Services Structured Services Interaction with ECA’s and others Importance of banks in promoting commerce The value proposition REGULATORY CONTEXT – OVERVIEW UCP URDG Incoterms UCP600 Jurisdiction Compliance TRANSACTION/PRODUCT OVERVIEW Open account Collections Documentary credits Guarantees and standby letters of credit Payment in advance TRADE FINANCE & RISK Overview of selected risks Mitigation options DOCUMENTARY LETTERS OF CREDIT – DEFINITIONS Definition of Documentary Letters of Credit (L/C’s) Parties to a credit Contractual relationships Confirmed L/C’s Terms of payment Transferable & Back to Back L/C’s Red Clause Green Clause Confirmed Silent confirmation Other Features of L/C’s DOCUMENTARY LETTERS OF CREDIT – APPLICATIONS Observations on financing Acceptances Discounting Aval Factoring Forfaiting Other finance mechanisms Buyer/supplier credits Checking, honouring & negotiation of documents Obligations and responsibilities of the parties		SESSION 8: UCP 600 Practical application of these latest rules Changes from UCP 500 Practical issues Challenges Key legal decisions (Santander v Paribas, CIC v CMB) INTERNATIONAL STANDARD BANKING PRACTICE (ICC 681) Introduction Preliminary considerations General principles Assessment of likely impact and benefit Changes? TRANSFERABLE CREDITS Advantages Disadvantages Risks Key legal issues Implications for parties Client interests Acceptability RED & GREEN CLAUSE (ADVANCE PAYMENT) CREDITS Pre-export finance applications Role on the market Financing mechanisms Structural analysis Risks for each party Risk mitigation & control REVOLVING CREDITS Structure Mechanism Automatic restrictions Amount or time, not usually both Cumulative or non-cumulative EVERGREEN CREDITS Definition Operation Risks FRAUD IN INTERNATIONAL TRADE L/C’s Autonomy of L/C’s Documents only weakness Proof of fraud Incidence Basic fraud prevention

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Price: GBP
Location: Available Globally
Event date: Open date - Open date
Event duration: -
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Phone: +44 208 133 5917

Documentary Letters of Credit Course

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