Letters of credit – for importers

Letters of credit – for importers – overview

The main aim of this programme is to help you and your key staff become expert at negotiating terms with suppliers, thereby lowering risk and improving your company’s position when importing raw materials, components or finished goods from overseas, particularly from suppliers based in the Far East and Asia.

Full details below or download course outline.

Learning objectives

This course will help participants:

  • Demystify the letter of credit process, from bank applications to trade terminology
  • Reduce risk and learn to incorporate the most favourable terms for your business
  • Understand and select the most appropriate delivery terms (Incoterms®) for international shipments
  • Fully understand, and learn how to finance, the trade gap from purchase to receipt of sale funds
Who should attend?

This one-day interactive session is aimed at companies who source raw materials, components or finished goods from overseas – and particularly for their purchasing and sales teams, finance departments and logistics.

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 – for importers – course outline

1 Issues facing importers and suppliers

2 Incoterms

  • Functionality and background
  • The rules in detail
  • Potential problems with EXW, FOB, CFR and CIF
  • Using Incoterms® in practice – specifically with letters of credit

3 Payment

  • Advance payment terms
  • Open account terms
  • Documentary collections
  • Bills of exchange

4 Documentation and terms

  • Types of letter of credit (documentary and standby)
  • Negotiating the best terms for your business
  • Requesting letters of credit for export sales
  • Common documents
  • Understanding the letters of credit rules – UCP600

5 Practicalities

  • How to issue letters of credit (includes examples and form filling)
  • What happens in the event of discrepant documents being presented

6 Finance

  • Using letters of credit to finance your trade cycle
  • Structured finance case studies
  • Hints and tips for reducing bank charges