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Essentials of Trade Finance

Curriculum

Introduction to Trade Finance

  • Impact of Basel III on corporate lending
  • Importance of risk-based pricing on trade finance

Key Risks in Trade Financing

  • Risks encountered by buyers and sellers
  • Performance/non-acceptance/documentation/payment risks
  • Measures to mitigate risk

Key Rules & Documentation for International Trade Finance 

  • International Commercial Terms (INCOTERMS 2010)
  • UCP 600, ISBP 681, ISP98, URDG 758, URC 522, Bills of Exchange Act
  • Nature and characteristics of documentations used in trade finance

Methods of Payment

  • Open account
  • Payment in advance
  • Documentary collection
  • Documentary credit (letters of credit)

Dealing with Discrepancies and Fraud

  • Types and danger of discrepancies
  • Dealing discrepant documents
  • Fraud and measures to minimize fraud

Leveraging Bonds and Guarantees

  • Types and usage of bonds and guarantees
  • How bonds and guarantees are used in operations

Structuring Trade Finance Facilities

  • Structure working capital lines
  • Preparing trade finance term sheet
  • Case studies

 

Last updated on 21 Jul 2017 .