International Payment Methods for Exports

Course details

This course is of key benefit to Finance, Credit Management, International Banking, Shipping, Customer Services, Order and Account Management personnel. The course also provides participants with practical knowledge in the areas of International Methods of payment and Letters of Credit which they will then be able to apply in their business to simplify the process.

Objectives

• To equip participants with the updated knowledge of essential banking payment processes, important for higher risk markets.
• To help course participants understand the issues causing discrepancies on presentations to banks for payment.
• Upon completion of this course, participants will be able to understand: e able to understand:
• Banking processes and compliance requirements for Documentary Credit and Documentary Collection presentations.
• The structure and format of a letter of credit (L/C) and the relationships between L/Cs and the main documents, for example: Commercial & Transport documents, Bills of Exchange (Drafts) and other documentary requirements;

Course Outline

Financial Risks inherent to Exporting Financial Risks inherent to Exporting

• Information sources
• Incoterms 2010 developments

Credit Risk Management and payment Credit Risk Management and payment analysis analysis

• Banking Payment methods versus Open account terms

International Payment Criteria International Payment Criteria
• Clean Collections / Bills of Exchange
• Documentary Collections
• Documentary Letters of Credit
• Types of documentary credits
• Advantages and disadvantages of International Bank Payment Methods

Commercial Operations Commercial Operations

• Terms and Conditions under L/C’s
• L/C applications to Banks
• Parties to the contract
• Assisting buyer to open the L/C

Letters of Credit (L/C’s) Letters of Credit (L/C’s)
• Understanding the Process
• Keywords in documentary credits

Negotiating L/C contracts Negotiating L/C contracts

• Parties to the contract
• Key Management Responsibilities
• Role of Finance and Credit

Documentary Credit Cycle Documentary Credit Cycle

• Application, Issuance, Shipments,
• Planning and Organising the process
• Improving LC processing effectiveness

The Currency Market and Exchange Rates

• Exchange Risk
• Forward Exchange Contracts

Documents under banking processes Documents under banking processes banking processes

• Transport Documents
• Commercial Documents
• Documentary exercises