Trade Finance Sales

£1,300.00 +VAT

Trade Finance Sales Course Overview:

Practical trade finance sales workshop on international payment and security instruments with special focus on documentary collections, documentary credits, demand  guarantees and short term receivable finance from the sales perspective. The seminar has been developed to address the most important aspects of the trade finance in order to better understand needs of  bank customers active in the international trade.

In contrast to other seminars on trade finance, the focus on this trade finance sales workshop is to develop knowledge and understanding of the trade finance services in order to sell/offer these services effectively. The scope and the content of the course, consequently, has been tailored to meet this overall goal.

Trade Finance Sales in Practice

To sell trade finance services to the customers effectively, one must:

  • understand how the main trade finance services and products work;
  • what are the overall benefits for their users, ie. bank customers;
  • what are the costs, risks, main practical issues involved and other main aspects which significantly influence the bank – customer relationship.

This Workshop has been designed to deal with the most relevant aspects of trade finance sales and is, therefore,  a must for:

  • bank relationship managers dealing with exporters, importers and traders;
  • bankers working in trade finance, particularly in documentary payments, bank guarantees and export/import finance departments, especially those responsible for the business relationship with customers and their support in the area of trade finance;
  • specialists in trade finance with a working experience, back office bank specialists who wish to broaden their knowledge about trade finance from sales/relationship point of view;
  • lawyers, advocates, academics who want to learn about short term trade finance services with focus on their overall operations, benefits for users, costs, risks involved, etc.

The seminar deals with both the standard and more advanced situations and practical issues in relation to export and import documentary collections, documentary credits and their financing, demand guarantees in accordance with best practices as reflected in ICC rules and publications. A part of the workshop will also relate to short term trade finance, ie. factoring, use of credit insurance and will provide an introduction to supply chain finance.

Objective of the trade finance sales training:

The main purpose of the seminar is to familiarize the participants with the main trade finance products in order to understand how they operate, what are their main benefits for their users, but also what are the main risks involved, associated costs, the main issues the users face in their practice. The participants, after the course, would be able to speak knowledgeably with their current and potential customers about the trade finance services their banks provide, thus better supporting the bank´s aspiration to increase the volumes and profits from these services, as well as enhancing the customer´s overall experience of dealing with the bank.

The seminar will be provided in the form of case studies, examples and discussions, i.e. active participation will be encouraged.

Material relevant to the course will be distributed and a certificate of attendance will be delivered to all those who completed the course.

Trade Finance Sales Course Content:

Trade Finance Day One

International trade, main issues, payment methods, financing needs      

International Trade – the main issues and risks to be considered

  • Risks from the Exporter´s perspective
  • Risks from the Importer´s perspective
  • Know Your Customer – his problems might become your problems as well!
  • Contract of Sale – main aspects to be considered by the Exporter and the Importer
  • Contract of Sale from the banker´s point of view
  • Delivery Terms as per Incoterms 2010 – what do they do?
  • Delivery terms for any mode of transport
  • Delivery terms for marine transport
  • How to choose the right Incoterm?
  • The choice of delivery term from the financing banker´s point of view

Case Study                       

International Trade – role of documentation

  • Main documents in international trade – their roles
  • Financial documents, Commercial documents, Transport documents, Insurance documents – the main aspects to be aware about
  • Bills of Lading v. consignment notes – control over the goods during transit
  • Security interest in the goods in transit from banker´s point of view

International Trade – risk mitigation tools, payment instruments and financing techniques

  • Main payment conditions in international trade
  • Payment in advance, payment after delivery
  • Documentary Collections and how they operate
  • The benefits for the Exporters and Importers in using Collections
  • Documentary Collections from banker´s point of view, an opportunity for the cross selling
  • Cost, risks, main mistakes in practice and how to avoid them
  • How to offer Documentary Collections to potential customers?

Case study – Collection in practice

  • Documentary Credits and how they operate
  • The benefits for the Exporters and Importers in using Documentary Credits

International Trade – risk mitigation tools, payment instruments and financing techniques

  • Trade Cycle of the Exporter and its financing needs
  • Trade Cycle of the Importer and its financing needs

Case Study – delivery terms v. payment terms

Trade Finance Day Two

Documentary Credits and their financing, Bank Guarantees, Standbys, Receivable financing

Documentary Credits – How they function – best practices

  • Import Documentary Credit
  • Issuance of the Credit
  • The Application to issue a documentary credit – main mistakes in practice
  • Import Documentary Credit as payment and risk mitigation instrument
  • Cost, risks in Import Documentary Credits
  • How to offer Import Documentary Credits to potential customers?

Case study: issuance of the credit

  • Export Documentary Credit
  • Advising, Confirmation
  • Main mistakes in documentary credits from Exporter´s perspective
  • Cost, risks in Export Documentary Credits
  • How to offer Export Documentary Credits to potential customers?

Case study: mistakes in the export credit

Documentary Credits – Main financing services

  • Import credit – import financing (import loan v. deferred payment)
  • Export credit – pre-shipment finance – the benefits
  • Red clause, green clause credits, packing, manufacturing credits
  • Export credit – post-shipment finance, negotiation, post-financing, forfaiting – the benefits
  • Post financing: how to choose the right technique?

Case study: cost of discounting a deferred payment credit

Use of credit and risk mitigation instruments: Bank Guarantees and Standbys

  • Bank Guarantees v. Conditional guarantees
  • Main types of guarantees, standbys
  • Examples of main types of guarantees

Case study: mistakes in an advance payment guarantee

  • How to offer bank guarantees to potential customers?

Receivable finance

  • Open account trade
  • Credit insurance – main principles from Exporter´s perspective and from the perspective of the financing bank
  • Factoring – how it operates
  • Supply chain finance – main techniques
  • New developments: BPO, digitalization of trade finance
  • Bank to Customer communication channels: front end systems, etc.
  • Current main challenges: compliance issues, new technology developments
  • Discussion

 

Training Course Name

Course Details

Trade Finance Masterclass UCP 600, ICC 552, FCC, International trade transactions
Letters of Credit UCP 600, ISBP 2013, trade documentation
Risk in Trade Finance and Trade Finance Products UCP 600, trade finance products, commodity finance regulations, URDG
Advance Trade Financing Course UCP 600, risk in trade finance, letters of credit
   
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Discounts

5-6 participants – 20% discount,7-8 participants – 25% discount,Over 9 participants – 30% discount