Fundamentals of International Trade Finance

This International Trade Finance training consists of lectures, case studies and discussions. Participants attending training should have a basic knowledge of international trade.

Introduction

• Trainer/Delegates
• Course Objectives
• Course Topics:
  • Foundations of Trade and the Trade Industry
  • Methods of International Trade
  • Trade Documents
  • Incoterms
  • Key Trade Products/Methods
  • Trade Documents Examination
  • Trade-Based Financial Crimes

Foundations of Trade

• International Trade:
  • Background of International Trade
  • How International Trade Functions – Elements of a Typical Trade Cycle
• Inherent Risks in International Trade:
  • Importer’s Risks
  • Exporter’s Risks
  • Financial Crime Risk
  • Country Risks
  • Bank Risks
• Attractions of Trade Finance to Banks:
  • Revenue
  • Cross-Selling Opportunities
  • Low Risk
  • Capital Efficient
  • Easy to Monitor
• Benefits of Trade Finance to Businesses:
  • Securing Trade Transactions
  • Negotiating Better Terms
  • Transparency of Rights and Obligations

Trade Documents

• Importance of Trade Documents
• Principal Trade Documents
  • Bill of Lading
  • Airway Bill
  • Bill of Exchange
  • Pro-forma Invoice
  • Commercial Invoice
  • Insurance Policy
  • Certificate of Origin
  • Packing List
  • Forwarding Agent’s Receipt
  • Rail, Road Consignment Notes/Truck Receipt
  • Multimodal Transport Document

Incoterms

• Definition and Purpose
• Structure of Incoterms
  • Incoterms for all Modes of Transport
  • Incoterms for Sea and Inland Waterway Transport Only

 Key Trade Methods/Products

• Documentary Collections are considered in this section of our international trade finance fundamental course:
  • Principal Parties in Collections
  • Roles and Responsibilities of Banks in Collections
  • Explanations of Salient Terms/Documents
    • Bills of Exchange
      • Parties to a Bill of Exchange
      • Sight
      • Usance
      • Clean Bills of Exchange
      • Acceptance of Bills of Exchange
  • Negotiability of Bills of Exchange
  • Discounting Bills of Exchange
  • Avalization
  • Protest of Bill of Exchange
  • Risks in Documentary Collections to Importers and Exporters
  • Case Studies:
    • Based on the contractual terms between the buyer and seller, Gamma Bank advises the seller to consider using Documentary Collections as the payment method
    • Roles and responsibilities of ABC Bank (Remitting Bank) and XYZ Bank (Collecting Bank) in an export transaction using Documentary Collections under URC 522
• Documentary Credits/Letters of Credit
  • Parties to a Letter of Credit and their Responsibilities
  • Advantages and Disadvantages of Letters of Credit to Exporters and Importers
  • Contracts in a Letter of Credit
  • Workability of a Letter of Credit
  • Cycle of Letters of Credit – Sight and Usance
  • Explanation of Salient Terms/Documents
    • Sight
    • Usance
    • DC Advised
    • DC Confirmations
    • DC Availability – by Negotiation, Payment and Acceptance is covered in this international trade and finance course
  • Types of Letters of Credit
    • Revolving Letter of Credit
    • Red Clause Letter of Credit
    • Transferable Letter of Credit
      • Mechanism of Transferable LC
    • Back-to-Back Letter of Credit
      • Mechanism of Back-to-Back LC
    • Stand-by Letter of Credit
    • Third Port Letter of Credit
    • Local Letter of Credit
  • Case Study:
    • Based on the contractual terms between the buyer and seller, PQR Bank advises the buyer to consider using a Letter of Credit as the payment method
    • ABC Bank offers Stand-By LC as an alternative for a recurring sale of goods every month over a one-year period
• Guarantees:
  •  Types
    • Tender/Bid Bond
    • Performance Bond
    • Advance Payment Guarantee
    • Retention Bond
    • Counter Guarantees
    • Warranties
  • Trade finance training covers the format and wording of Guarantees
    • Demand for Payment – an essential feature
  • Renewal of Guarantee and/or Demand for Payment
  • Expiry and Return of Guarantees

Trade Documents Examination

• Buyer’s Responsibilities
• Seller’s Responsibilities
• Bank’s Responsibilities
• Adherence to UCP 600:
  • Presentation of Documents
    • Examination of Documents regarding Article 14
  • International Standard Banking Practices (ISBP) General Principles
  • Examination Processes/Rules for:
    • Dates
    • Drafts/Bills of Exchange
    • Transport Documents – Bill of Lading/Airway Bill
    • Invoices
    • Insurance
    • Certificate of Origin
    • Packing List
• Non-Compliant Documents:
  • Letters of Credit
  • Bills of Exchange
  • Invoice
  • Bill of Lading
• International trade finance training examines three additional Case Studies:
  • XYZ Bank as the issuing bank, considering the refusal of payment under a Letter of Credit where the goods have been lost at sea
  • ABC Bank as the issuing bank, considering the refusal of payment under a Letter of Credit because the terms of the LC amendment were not complied with by the seller
  • Use and interpretation of UCP 600 Article 14 in a situation where the Issuing Bank and Negotiating Bank contest the compliance of Article 14 terms

Trade-Based Financial Crimes

• Financial Crime Risk in Trade Finance
• Importance of Trade-Based Know Your Customer (KYC)
• Trade-Based Financial Crime:
  • Money Laundering 
  • Terrorist Financing 
  • Sanctions
  • Tax Evasion
• Trade finance training considers other players in Trade-Based Financial Crime:
  • Hawala Operators
  • Money Exchange Service Providers
  • Intermediaries/Professionals
• Trade-Based ML/TF Red Flags
• Commercial Fraud and Collusion
• International Trade Finance Course Case Study
• The case of Company Z undertaking over-invoicing as a means of money laundering and fraud provides an opportunity to identify typical red flags in an international trade transaction

At Redcliffe Training, our International Trade Finance course expert is a former banker with over 30 years of experience in the financial services industry. His distinguished career includes 22 years with HSBC Bank Middle East, where he served from 1991 to 2013. He has over a decade of experience designing and delivering professional training programs.

He began his professional career as a credit analyst at HSBC, advancing into several senior Relationship Manager roles. Working in a global bank provided him with a platform to further enhance his banking knowledge and expertise. He developed a particular niche in all areas of Commercial Banking, with a high degree of specialisation in Corporate Lending, Credit Risk Analysis, Trade Finance, Relationship Management and Corporate Banking Products.

In 2008, he transitioned into a full-time training role at HSBC. This was a position he held until 2012 before moving on to independent financial consultancy and training.

He combines in-depth technical knowledge of commercial banking products and services with strong commercial insight, clear communication, and a people-centred approach.

Our distinguished trainer has conducted many technical, product, and behavioural sessions for diverse audiences. His expertise spans:

• Financial Analysis
• Credit Risk
• Trade Finance
• AML/Compliance
• Project and Islamic Finance
• Sales and Relationship Management

His teaching methods blend clarity, practical application, audience engagement, and effective results-oriented learning. Delivering courses in the wider GCC, MENA, Europe, Latin America, and Asia Pacific regions has given our expert exposure to the various cultural and professional approaches to work. He has also completed trainer accreditation programmes in Hong Kong and the UAE.

Upon completion of Redcliffe's international trade finance training,  participants will be able to:

• Explain the situations where Trade Finance should be on the agenda of corporates and banks
• Identify opportunities to market Trade Finance solutions
• Identify potential risks to banks and businesses
• Explain the features, benefits, risks and consequences of using key Trade Finance products
• Understand the key financial crime risks emanating from international trade

• Redcliffe Training only uses industry experts. Our international trade finance training specialist has 30 years of relevant industry experience. Our course expert has put into practice all the knowledge he has accrued over three decades
• We can tailor course topics to suit the requirements of your team
• We deliver training onsite, at an arranged time
• Sessions combine learning methods and include several relevant case studies for analysis and discussion
• We have specifically designed this course for financial, legal and corporate professionals requiring a deeper understanding through trade finance training

Fundamentals of International Trade Finance training is a must-know for:

• Credit and Risk Officers
• Corporate Relationship Bankers
• Transaction Banking Sales and Product Specialists

Professionals working in the trade functions of banks and corporates will also greatly benefit from this course. Sessions may also apply to finance, accountancy, legal and any advisers requiring a more comprehensive and deeper understanding of the subject.

From small to medium and larger businesses that import and export, Redcliffe’s International Trade Finance training is an important workshop for mastering the international trade environment.

Delivered over a single day, you will have the opportunity to investigate trade finance to determine where on the agenda this should appear. We will identify opportunities and solutions. Including any potential risks, whilst ensuring participants solidify their knowledge through interactive case studies.

Expect to gain practical insights covering a mixture of broad and nuanced topics.