Letters of credit – an advanced workshop

Letters of credit – an advanced workshop – overview

A one-day interactive workshop aimed at exporting companies and freight forwarders who regularly receive or handle letters of credit.

The workshop assumes a basic working knowledge of letters of credit and will help you to gain a deeper understanding of current ‘hot topics’ from the world of trade finance and the application of the ICC ‘bible’, the UCP 600.

The training is delivered by an experienced trade finance professional who will provide you with:

  • An insight into bank procedures
  • Techniques for negotiating reduced fees
  • An understanding of how to accelerate cash due from letters of credit

Full details below or download course outline.

Learning objectives

This course will help participants:

  • Appreciate the context in which letters of credit operate
  • Get to grips with all the key features of letters of credit
  • Mitigate risk
  • Manage costs
  • Get all the documentation right first time
  • Improve efficiency

It will help make their lives easier, and save the organisation time and money.

Who should attend?

The course is suitable for anyone involved in handling letters of credit, eg, export sales executives, finance teams, export managers, shipping / logistics and administrators.

Course format

A very practical, case study based, interactive one-day session for a maximum group size of 12.

Expert trainer

Mark is a qualified member of the Institute of Export (MIEx, CITA) with 40 years’ experience in international trade finance. He is a member of the International Chamber of Commerce (UK) with strong links to the ICC Banking Commission, which helps ensure that all his courses are guaranteed to be relevant, topical and completely up-to-date.

Recognised as one of Europe’s leading trainers on the subject of letters of credit, Mark delivers approved courses on behalf of Chambers of Commerce and the Department for International Trade. His clients include internationally trading organisations from a range of sectors, eg, aerospace and defence, energy, automotive, engineering, healthcare and medical, logistics and financial services.

Mark is an extremely engaging and popular trainer, as the following sample feedback shows:

‘We all started with varying but minimal amounts of knowledge and left with much more confidence to negotiate Incoterms in our contracts. The team enjoyed the visual aids and exercises which really helped us to understand the subtle differences between each of the terms. Mark kept everyone engaged and kept at a pace which suited our learning.’

‘This has not only improved our turn around on completing orders more efficiently, it has also had a massive cost saving for the business. We feel we would not have had the confidence to make this transition if it were not for Mark’s excellent training. Mark has a very relaxed approach to training, yet covers all aspects in full and keeps it very interactive. We have since had Incoterms and Documentary Collections training, which again were very informative. The team are very grateful for the training and it has helped them to feel more confident in their day-to-day dealings with L/Cs and general export enquiries. Thank you Mark!’

Letters of credit – an advanced workshop – course outline

1 Introduction

  • Welcome
  • Introductions
  • Objectives

2 Current issues facing banks and traders globally

  • A topical overview

3 Key features of letters of credit

  • What are they all about?
  • How do they work?

4 Uniform Customs & Practice for Documentary Credits (UCP 600)

  • A detailed look at the key articles
  • International Standard Banking Practice (ISBP 745)
  • Case studies and exercises

5 Mitigating bank and country risk

  • A detailed look at confirmed letters of credit

6 Variations of credit

  • Standby letters of credit
  • Red clause / advance payment credit
  • Back-to-back credit
  • Transferable credit
  • Revolving credit

7 Developing a strategy for managing letters of credit

  • Getting things right from the start – obtaining a workable letter of credit
  • Reviewing letters of credit upon receipt
  • Avoiding the need for amendments and discrepant documents
  • Hints and tips for dealing with the banks
  • Understanding the costs – how to negotiate reduced bank fees
  • Document checking exercise

8 Using letters of credit to finance transactions

  • Understanding an exporter’s trade cycle
  • Discounting and negotiation