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The Banking and Corporate Finance Training Specialist
The Advanced Trade Finance
Course
This course is presented in London on:
28-29 September, 8-9 February 2017, 22-23 November 2017
Course Overview
International Trade has always been the engine for global economic growth and is playing an ever important role, as new powerful economies emerge, shifting the
balance of trade influence from the traditional wealth creators to new regions and economies.
This advanced course will provide delegates who are already familiar with or are
working in a trade finance environment, with an insight into the more complex trade finance techniques that are becoming more common.
Much of complex International Trade is either misunderstood or undervalued mainly because the terminology and practices seem difficult and confusing to master. This
course will completely de-bunk this misconception and will leave delegates with a clear and working knowledge of how trade is undertaken at its most complex level.
It will show what actually happens and just how profitable this section of a bank’s business can be. It will also suggest methods of handling problems when things go
wrong. At the end, all delegates will have a clear and full understanding of exactly how
complex trade takes place across the globe at an advanced level.
A good working knowledge and familiarity with International Trade finance is required to derive the maximum benefit from this course.
Day One:
The Market Historical evolution and current developments in the market place Trade Finance versus ‘balance sheet lending’
Understanding and controlling the cash flow Typical users of Trade Finance products and services
Risk – The Critical Issues
Understanding, identifying and managing risk Sovereign, Political / Country risk
Institutional risk / Bank risk Corporate and other critical risks Importer and Exporter’s risk
Other risks in the transaction and how to mitigate them (transport risk, warehousing, force majeure, etc.)
Risk mitigation, management and transfer
Course Overview
Course Content
Review of Key Products
How does the customer analyse his risk? Which products does he use and why? Payment in Advance
Open Account Collections – Outward & Inward / Clean & Documentary
Letters of Credit (covered below) Risks and opportunities Control possibilities
Supply Chain Management & Finance
The origins of SCM Understanding the issues in SCM – “the tug of war” between supplier & buyer Identifying Market Opportunities
Bringing about a “balance” between parties for effective processing Understanding about movement of ‘information’ ,’goods’ and ‘cash’
Supply Chain Finance – not just a new opportunity but an essential element for sustainable business
Main SCF models: accounts payable - centric, accounts receivable – centric, other
models (four corner model of BPO) Review the risk aspects of SCF
Letters of Credit (L/Cs) - Advanced Mechanisms
The mechanics and use of: Revolving L/Cs Transferable L/Cs
Back to Back L/C structures
Pre-Export Finance The effective use of red and green clause letters of credit
Packing and manufacturing credits
Post-Export Finance Negotiation under letters of credit
Discounting of deferred payment L/C, acceptance credits (with or without recourse)
Export Finance issues Looking at the big picture
Understanding the purpose of borrowing Country risk issues The reality of title and control
Controlling Credit Exposure – Formulating a Limit Understanding and explaining the trade cycle The use of time lines
Assessing and appreciating funding gaps
Structured Trade Finance Situations (apart from Case Studies) Analysis of 2-3 examples based on above situations
Day Two:
Structuring Finance for the Trader
Facility Management: Analysing the trade flows
Assessing facility size and structure Specific lending with identifiable maturity dates
Appreciating and controlling sources of repayment
Effective Use of Collections for Short-Term Finance Using collections as financing opportunities Identifying and mitigating risks
Maintaining control
Supporting the Trader Using the goods as collateral
Assessing the value of goods The value of pledges and trust receipts
The need for structured lending
Warehousing of Goods Warehouse location
Management assessment Legal frameworks Obtaining and retaining title and control
Risks and responsibilities of Collateral Managers Cost versus control
International Demand and Contract Guarantees / Bonds
Scope and Application – an introduction (suretyship v. demand guarantee) Different types - Bid, Performance, Advance payment and Retention bonds
Rules governing guarantees and bonds Legal jurisdiction and expiry date issues Value of using URDG 758 – ICC Rules for demand guarantees
Opportunity spotting Standby L/C’s (SBLCs)
Understanding the applicability of ISP98 and UCP 600 for standbys
Receivables Financing Mechanics of Factoring and Invoice Discounting
Forfaiting – an important adjunct to the TF mechanism Role of Credit Insurance Mechanics of Securitisation
Nightmare scenarios
The Commodity Sector and its Players History and origins of the commodity industry Understanding the nature of ’commodities’
Analysing the players – growers / producers; traders and end-users Financing of commodities
http://redcliffetraining.co.uk [email protected]
+44 (0)20 7387 4484
Looking beyond the balance sheet
Available documentation – taking and retaining title Commodity futures, options and derivatives
Hedging – a critical process in commodity finance Role and function of the exchanges Main risks in the commodity trade (market, fraudulent practices, legal issues,
recent legal cases)
Countertrade Overview – when to use
Pitfalls and complications Possible structures and Time management
Syndications
When to syndicate Lead or participant role
Impact of quasi-governmental agencies Risk/reward analysis
Structured Trade Finance Situations (apart from Case Studies) Analysis of 2-3 examples based on above situations
Course Conclusion and Review / Feedback
09:30 -17:00
London
£1,125+VAT (£1,350)
Discounts available for multiple participants:
3-4 participants: 15% discount per participant
5-6 participants: 20% discount per participant 7-8 participants: 25% discount per participant
9 or more participants: 30% discount per participant
Delivering this course in-house for you to a number of participants could be very cost effective.
