International Trade and Finance Course

Accounting, Finance and Budgeting Training

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International Trade and Finance Course

Course Overview:

The Certificate in International Trade and Finance (CITF) course equips participants with specialized skills on international trade finances covering some vital areas like payment modes, negotiation, and risk management strategies. Participants will gain knowledge on letters of credits, international guarantees, factoring, forfaiting and other instruments of trade financing.

The course also includes the most recent ICC 600 rules, use of trade finance in countries with high political risks, as well as pre-shipment and pre-export financings. With insights into the structure of trade finance deals and foreign contract management, this course is most appropriate for practitioners desirous of growing their global trade finance competence.

It is notably appropriate for credit and trade finance managers.

Course Objectives:

At the end of this Certificate in International Trade and Finance (CITF) course will gain a practical understanding a working knowledge of the following:

A payment, negotiation, acceptance, confirmation, and deferred payment credits
The UCP-ICC 600 rules
International documentation
Standbys and international guarantees
Back-to-back, front to back and event-triggered finance
The mechanics of discounting, forfeiting and factoring
Pre-shipment and pre-export risk assessment
International contract financing
Marketing trade finance – internal and external

Who Should Attend?

Certificate in International Trade and Finance (CITF) course is perfect for:

Those seeking a professional international trade and finance course and aspiring to work within an area dealing with trade finance
This International Trade Finance training course is suitable for all delegates who are interested in contemporary trade finance and is aimed at improving the communication between credit managers and trade finance managers.

Course Outlines:

What is Trade Finance?

Benefits of trade finance to businesses and banks
Introduction to the trade cycle
Collections and international documentation
Payment, acceptance, and negotiation modes of funding
A closer look at negotiation under new ICC 600 rules
Deferred payment letters of credit
Confirmations silent/straight and soft
Red clause L/Cs their mechanics and risks
The utilization of non-operative clauses as a risk mitigation technique
Deferred payment L/Cs in oil trading
High-risk countries and the red clause transferable bulk L/C

International Demand and Contract Guarantees / Bonds

Scope and Application – an introduction (suretyship v. demand guarantee)
Indemnities versus guarantees
Different types - Bid, Performance, Advance payment, Warranty and Retention bonds
Rules governing guarantees and bonds
Legal jurisdiction and expiry date issues
Value of using URDG 758 – ICC Rules for demand guarantees
Impact of non-bank competitors – COFACE, Euler Hermes

The Essential Differences Between Guarantees and Standby L/Cs

Guarantees in trade finance
Case studies and examples of performance bonds, bid bonds, retention money guarantees, and advanced payment guarantees
The mechanics of standby contemporary issues
Case study: Defining the products by example
THE HYBRID: A practical case study reviewing the risks inherent in the conditional guarantee and standby being utilized as payment mechanisms

Forfaiting and Factoring

Single receivable forfeiting market
Mechanics of forfeiting
The political risk reality of forfeiting
Forfaiting deferred payment L/Cs
Contemporary models
Forfaiting and factoring compared
Forfaiting interest calculations
Jumbo L/C risk sharing, sales and distribution
Structured single export

Import / Export Documentary Collections

Principal parties – roles and responsibilities
Benefits to importers and exporters of Documentary Collections
Relationship between principal and bank(s)
Role of banks (incl. correspondent banks/agency arrangements)
Legal and practical issues are the duties of the banks involved in handling collections
Conditions for release of documents
Procedures for Protest of Bill of Exchange (B/E) and underlying risks
Complexities of the ICC Uniform Rules for Collection (URC 522)