International Trade Finance - Advanced Level
In-house
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.
- Understand all contractual obligations in trade finance
- Master facility structures and back to back structures
- Know how to support the exporter: guarantees and forfeiting
- Fully comprehend commodity finance
- Be able to structure trade deals
Pre-requisites
A good working knowledge and familiarity with International Trade finance is required to derive the maximum benefit from this course.
Main Topics Covered During This Training
- Current developments in the market
- Identifying and managing risks
- How does the customer analyse his risk
- Review of key products
- Advanced mechanisms for Letters of Credit
- Pre-export finance
- Controlling credit exposure
- Structuring finance for the trader
- International Demand and Contract Guarantees / Bonds
- Receivables Financing
- The Commodity Sector and its Players
- Countertrade
- Syndications
Who Should Attend
- Import / Export Executives
- Export Finance Managers
- Financiers
- Insurers
- Commodity Finance Professionals
- Corporate Relationship Managers
- Credit and Risk Management Professionals
- Relationship Managers within Financial Institutions
- Senior Operations Personnel
Teaching Method
This is a highly practical course with many real life case studies and exercises. Tutor will be focused on teaching practical strategies that can be taken back to your business and put into immediate effect.
In order to help us establish your individual and business concerns, you will be asked to fill pre-course questionnaire.
Because of the nature of the course the number of places is limited and will be filled on first come, first accepted basis. We advise to book in advance in order to avoid disappointment.
International Trade Finance - A 2 Day Programme
Day 1
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
- Risk mitigation, management and transfer
Review of Key Products
- How does the customer analyse his risk?
- Which products does he use and why?
- Cash 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
- Review the risk aspects of SCF
Letters of Credit (L/Cs) - Advanced Mechanisms
- The mechanics and use of:
- Back to Back L/C structures
- Transferable L/Cs
- Revolving L/Cs
Pre-Export Finance
- The effective use of red and green clause letters of credit
- 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
- Different types - Bid, Performance, Advance payment and Retention bonds
- Rules governing guarantees and bonds
- Legal jurisdiction and expiry date issues
- Opportunity spotting
- Standby L/C’s (SBLCs)
Receivables Financing
- Mechanics of Securitisation
- Mechanics of Factoring and Invoice Discounting
- Forfaiting – an important adjunct to the TF mechanism
- Role of Credit Insurance
- 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
- 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
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
Our trainer is an investment and private banker with over 30 years experience in the UK corporate and private banking sector. He qualified as an associate of the Chartered Institute of Bankers in 1981 finishing as the top candidate for the year with distinctions and winning the Whitehead Prize for Monetary Theory. In 2009 Mark qualified by examination at the Ecole Superieur des Affaires (Beirut) jointly with the Chartered Institute of Securities and Investment for the Islamic Finance Qualification (IFQ).
In-house Training
If you have a team of 4 or more this course can be customised and organised in-house at your convenience in any of your offices worldwide. Contact one of our advisors to find out more.
Call us now on +44 (0) 207 993 8597
