Trade Finance remains the engine at the heart of global economic growth with China still probably the most important participant. Commodity Finance sits at the heart of this trade dominated by oil and gas which according to some estimates, accounts for as much as 70% of all commodity trade. Global trade is reckoned to be worth $40 trillion and growing.
Trade finance is an interesting risk paradox. It has always been a business area where credit losses are typically very low (mainly fraud in practice), fee income opportunities are high and some of the products are very efficient users of capital. On the other hand it is a very high risk area for Financial Crime. It is estimated that as much as $2trillion is laundered annually, much of it using trade finance. Regulators and law enforcement agencies believe that if it is made as difficult as possible to launder money through banks, this could help stifle crime. Banks are expected to do their bit and this is having a significant (but manageable) impact in most banks. With trade typically transiting several countries, with different regulations and different regulatory standards, it is very difficult to manage the risks with precision. This remains a product offering that is watched very closely by regulators and policed ruthlessly (when it comes to sanctions) by OFAC.
This practical two day trade finance course is designed for relationship managers and those working in sales or supporting the sales team together with colleagues from credit department, responsible for approving trade finance propositions. It concentrates on risk identification and mitigation as well as how to explain the wide range of the Bank’s Trade finance services. It focuses particularly on risk assessment, delivery, need identification, and selling opportunities. The course encourages delegates to see issues from both the client’s and the bank’s relationship manager’s viewpoint.
The aim is to provide high quality trade finance services to the bank's clients in a seamless and helpful manner and to assist delegates understanding of the trade flows and the precise nature of the banking risks undertaken.
The course will also demonstrate the self-liquidating short term nature of most trade transactions. A clearer understanding of the actual banking risks should mean profitable business and earnings opportunities will arise as a natural consequence. The course encourages trade finance specialists to become user friendly general practitioners, rather than specialist custodians of knowledge, which can sometimes be the case from the client’s viewpoint. All clients want value for money services. This course aims to encourage delegates to deliver it.
Has over 40 years in the banking and trade finance sectors. His career was spent initially with Lloyds Bank plc and then as a main board director of a specialist London based merchant bank. He has delivered numerous successful public courses on this topic as well as in house trade and commodity financing programmes at an advanced level for Bank of China, HSBC, Royal Bank of Scotland Group, Lloyds TSB, Commerzbank, Garanti Bank as well as all the leading South African and Nigerian Banks
He is an approved external master trainer for the world’s largest trade finance bank and has trained extensively in the UK, USA, Europe, Scandinavia, Africa, Asia and the Middle East.
The course will be run as a workshop style classroom session, with detailed examples. Delegates are free to bring their own cases/examples to the sessions.
Beginners are welcome although a very basic working knowledge and understanding of the methods of financing International Trade would be helpful.
Case Study – the impact of risk on trade – the often differing bank & client’s perspectives
Case Study – how does your client choose to trade – what would you prefer?
Avoiding unhelpful retrospective advice
Case Study – How can the bank assist when there is no obvious role?
Why is it any different to domestic trade
Case Study - how do we fund this client preferred method of trade?
What is the real point of a clean collection
Case Study – Imports are easier to fund using collections than exports – discuss?
Case Study – This is by far the easiest and safest trade instrument for clients and the banks. With the exception of Standby L/C’s why do conventional L/C’s account for less than 15% of all trade?
Case study example – consider a hypothetical case
Case Study – L/C backed STF is easy to fund. How do we handle Open Account?
Case Study - How can we re-learn short term TF skills and trade cycles and move away from the omnibus overdraft?
Case Study – example
Standby L/C’s (SBLCs) as Risk mitigators
Case Study – a construction client’s needs
Case study – example
Case study – How to use these techniques to establish a base relationship with a target client
All of our courses form part of a larger group of courses within the trade finance market. Below Outlines the key areas of trade finance of interest to delegates.
Training Course Name
|Trade Finance Sales||UCP 600, ICC 552, FCC, International trade transactions|
|Letters of Credit||UCP 600, ISBP 2013, trade documentation|
|Structured Trade and Commodity Finance||UCP 600, trade finance products, commodity finance regulations, URDG|
|Advance Trade Financing Course||UCP 600, risk in trade finance, letters of credit|