This course covers all aspects of international trade finance from a practical viewpoint. Particular emphasis is placed on risk assessment and approaches to minimizing trade risk, including methods of payment and financing solutions.

US$73 per 365 days

 

What is Trade Finance:

Since the end of the Second World War, there has been a massive increase in global trade between independent sovereign states. A significant percentage of the products we buy on a daily basis are now traded internationally. Sometimes these goods have been transported across several countries before arriving as finished goods in our shopping trolleys. The rise of global supply chains means that intermediate goods cross borders far more often than they did in a world where most stages of production took place within a single country. This is one reason why growth rates in world trade regularly outstrip even growth rates in global GDP.

In facilitating this volume of international trade, the importance of an appropriate trade finance infrastructure cannot be overstated. Cross-border transactions present a number of potential difficulties for the parties (importers and exporters) involved. For instance, how do the trading parties handle the practical problems arising from the transport of, and payment for, goods moving from one country to another? How can sellers obtain access to pre-export finance in order to fulfill their customers’ orders? Are there guarantees or insurance products available to reduce the uncertainty associated with international trade? What risks related to differing legislation, customs, and practices need to be considered? The absence of an appropriate trade finance infrastructure would constitute a major barrier to trade. Uncertainty surrounding payment, limited access to financing, and lack of guarantees or insurance would severely hinder the ability of importers and exporters to trade, with a consequent knock-on effect on the export potential and growth rate of both individual countries and the global economy.

Why it is important:

All forms of business contain risk, but the risk profile for international trade transactions inhabits an entirely different dimension from that for domestic transactions. A cross-border trade, no matter how straightforward it may seem initially, isn't completed until delivery has taken place and the exporter has received payment. While this may seem obvious, even seemingly simple trades can and do, go wrong.

This course covers all aspects of international trade finance from a practical viewpoint. Particular emphasis is placed on risk assessment and approaches to minimizing trade risk, including methods of payment and financing solutions. The crucial role played by banks and other parties in providing such solutions is also described in detail. The key to understanding trade finance depends on knowledge of these established products and practices.

What will you learn:

  1. International Trade Risks
  2. Methods of Payments
  3. Trade Finance Key Commercial Documents
  4. Role of Banks in Provision of Payment Services
  5. Role of Banks in Provisioning Funding
  6. Basics of Open Account Trading
  7. SWIFT’s Trade Services Utility
  8. Documentary Collections
  9. Uniform Rules for Collections
  10. Letters of Credit – Basics, Types, Process & Risks
  11. Export Working Capital
  12. Bank Guarantees
  13. Structured Trade Finance

Target audience:

Professionals working in banks and other firms involved in international trade, including corporate bankers, relationship managers, operations and support staff, legal and compliance executives, finance and accounting personnel, export, and import managers.

Curriculum:

  1. Trade Finance: International Trade Risks
  2. Trade Finance: Methods of Payment
  3. Trade Finance: Key Commercial Documents
  4. Trade Finance: Role of Banks in Provision of Payment Services
  5. Trade Finance: Role of Banks in Provision of Funding
  6. Trade Finance: Open Account Trading Basics
  7. Trade Finance: SWIFT’s Trade Services Utility (TSU)
  8. Trade Finance: Documentary Collections
  9. Trade Finance: Uniform Rules for Collections
  10. Trade Finance: Letters of Credit Basics
  11. Trade Finance: Letters of Credit Types
  12. Trade Finance: Letters of Credit Process
  13. Trade Finance: Letters of Credit Risks
  14. Trade Finance: Export Working Capital
  15. Trade Finance: Bank Guarantees Basics
  16. Trade Finance: Letters of Credit Types
  17. Trade Finance: Letters of Credit Process
  18. Trade Finance: Letters of Credit Risks
  19. Trade Finance: Export Working Capital
  20. Trade Finance: Bank Guarantees Basics
  21. Trade Finance: Bank Guarantees Types
  22. Trade Finance: Structured Trade Finance Basics

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