Import/Export: Trade and Export Finance

Course Overview

A one-day introductory course for anyone involved in financing overseas or export-related trade. We look at the additional risks and why the structure of the contract is so important. We discuss short and long term solutions, letters of credit, bills, and promissory notes. We also consider why the structure of the invoice is so important. Receivables financing with and without recourse is also covered, together with bonds and guarantees, and the role of ECGD.

Course Outline

OVERSEAS BUSINESS

• The additional risks
• Longer lines of communication
• Political and transfer risk
• Overseas credit risk
• Export essentials - the contract

ESTABLISHING PAYMENT TERMS - HOW DO I GET PAID?

• The building blocks of trade finance
• International payments - risk spectrum
• Advance payments and deposits
• Open account
• Documentary credit vs. documentary collections
• Letters of credit
• Bills of exchange

DOCUMENTARY LETTERS OF CREDIT

• Definition and key features
• Irrevocable, confirmed, unconfirmed, revolving
• Transferable, negotiable
• Acceptance credit
• 7 golden rules
• Common misconceptions
• Examples

BILLS OF EXCHANGE AND PROMISSORY NOTES

• Definitoin and key features
• Sight bill
• Usance bill

TRANSPORT DOCUMENTATION

• Bills of lading
• Terminology

THE INVOICE

• Be clear and explicit
• Do not assume everyone speaks English
• Terms of Trade
• Basis of the sale
• Offering discounts

BONDS AND GUARANTEES

• Definition
• Range of bond types

Import/Export: Trade and Export Finance / F-TEF