Chrome Consultants

International Trade Finance – Contemporary Concepts & Practical Applications

Program description & objectives

This unique seminar is structured to re-introduce delegates to the nuts and bolts of International Trade Finance. On the other hand, the program is at the same time very contemporary and aims to bring recent developments in international trade and finance to the fore. Approaching the topics in a modular format, the course will enable delegates to grasp relevant key concepts in a practical way and thus help to build a firm platform on which to expand knowledge and know-how. Specifically, after the program, delegates would have learned to: - Better appreciate the difference between the provision of trade services and trade finance - Look beyond the balance sheet and understand the contractual details - Appreciate the importance of INCOTERMS - Understand the mechanics of open account and collections transactions - Understand the operational/credit risk factors with the product - Understand the mechanics of back to back and transferable transactions - Understand the risk and mitigants when structuring solutions - Consider the regulatory issues in the market sector - To understand the role of factoring and credit insured financing - To appreciate the wider importance of credit and political risk coverage

Venues, Dates & Cost

VenuesDublinLondonDubaiEdmonton (CAN)Lagos/Abuja
DatesTBDTBDTBDTBDTBD
Cost$3,900 per participant (USD)(=N=)

For Whom

  • Relevant Central Bank Managers & Officers
  • Commercial Bankers on Maritime Desks
  • Regulators of Maritime & relevant government agencies
  • Financial Institutions with Export and Import Departments
  • Customs Officers, Shipping Agents & Shippers
  • International Traders and Practitioners

Snapshot of course content

  • Trade Services vs Trade Finance
    • Effective product delivery as a key factor
    • Using identifiable maturity dates for financing purposes
    • Looking beyond the balance sheet – collecting trade-related information
    • Segregated financing – avoiding the overdraft
  • Understanding the Contractual Environment
    • The impact of the selected INCOTERM on risk factors
    • Commercial Documentation
    • Understanding the mode of transport
    • The use and value of documents of title
    • Import and export regulations
    • Pre-shipment inspection concepts
  • Financial Documentation
    • The market use of bills of exchange/drafts/promissory notes
    • Trade bills and bankers acceptances
    • The value of avalised bills/promissory notes
    • Accelerating cash flow through discounting activity
  • The Use of Open Account System
  • The Use of the Documentary Collections Systems
    • International Chamber of Commerce Regulations
    • The roles of the remitting and collecting banks
    • Payment terms – D/P and D/A transactions
  • Financing Opportunities
    • Understanding the trade flows and the track record
    • Assessing buyer and country risk factors
    • Possible structures for open account transactions
    • Possible structures for documentary collection transactions
    • The value and uses of documentary credits
    • International Chamber of Commerce Regulations
    • The impact of UCP 600
    • The role of advising and confirming banks
    • Payment, acceptance, deferred payment, and negotiation techniques
    • Interpretation issues
  • Operational and Credit Risk Perspectives
    • Financing Opportunities
    • Discounting with and without recourse
    • Negotiating documents – with or without recourse?
  • The Role and Needs of Middle Men/Traders
    • Back-to-Back Letters of Credit
    • Transferable Letters of Credit
  • The Regulatory Environment
  • The Purpose and Value of International Factoring
    • Market Practice Variations
    • Credit and Political Risk Coverage
    • Risks and Mitigants
  • Bank Guarantees and Standby Letters of Credit
    • Pre-export financing and counter-trade techniques
    • The market use of bills of exchange/drafts/promissory notes
    • The impact of URC 522
    • The impact of UCP 600
    • Problems with non-compliant documents