Letters of credit – an introduction

Letters of credit – an introduction – overview

A very practical one-day workshop to help staff working in exporting companies and freight forwarders who regularly receive or handle letters of credit.

The workshop assumes no detailed prior knowledge.

The training is delivered by an experienced trade finance professional who will guide your team through a complex area in a clear, structured, user-friendly fashion with exercises, case studies and plenty of time for questions, thus ensuring that everyone leaves the session with a clearer understanding and the confidence to deal with letters of credit more effectively and efficiently.

Full details below or download course outline.

Learning objectives

This course will help participants:

  • Negotiate the most favourable letter of credit terms for your business
  • Accurately factor the costs into your selling price
  • Minimise the need for costly amendments
  • Prepare letter of credit documents which comply with the most challenging of terms
  • Avoid the common pitfalls
Who should attend?

The course is suitable for anyone involved in handling letters of credit, eg, export sales executives, finance teams, procurement specialists, export managers, shipping / logistics teams, customer service teams and administrators from all relevant functions.

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 introduction – course outline

1 Introduction

  • Welcome
  • Introductions
  • Objectives

2 Letters of credit – the basics

  • Why have them?
  • Risks and issues facing sellers, buyers and banks
  • What is a letter of credit?
  • How do they work? – seller and buyer perspectives

3 Letters of credit – in practice

  • The roles of the banks
  • Understanding the jargon
  • How to set up a workable letter of credit – templates and examples
  • Confirmed letters of credit – why use them? What are the cost implications?
  • Bank charges – calculating and minimizing costs

4 Letters of credit – the pitfalls

  • Understanding the rules – UCP 600
  • Common problems and discrepancies

5 Letters of credit – the documentation

  • Techniques for preparing and presenting documents to the bank
  • Checking the documents – what the bank is looking for!
  • Discrepancies – what to do if things go wrong
  • Examples and exercises