The target audience is varied including bankers working in client relationship, transaction banking sales & product areas and credit & risk roles and also corporate professionals who require a working knowledge of trade finance.

This course systematically analyses the various types of trade finance products including how and why they are used, the benefits they provide to exporters/importers, how they are structured and why they enable risk to be identified, managed, mitigated and transferred. A wide variety of trade products will be explained including Documentary Collections, Letters of Credit in their various forms, Bonds/Guarantees/Standby Letters of Credit and the numerous ways in which trade finance is provided, both pre and post-shipment.

The course will also examine how trade finance differs from other forms of lending and the attractiveness of trade products to corporates as a form of working capital finance and also to banks, both in terms of broadening client relationships and in the cost effective use of their balance sheet

• A broad understanding of the full range of trade finance products.
• How trade products can be appropriately structured to meet the specific needs of the buyer and seller (and the banks providing them).
• Using trade products to increase international business in a safe way via risk identification and mitigation techniques.
• How risks can be transferred between parties.
• The benefits of trade finance over other forms of finance (for a corporate and a bank).

Module One - Working capital and cash from operations

• Impact of profits and working capital on core cash flow
• Working capital objectives and implications from a Treasurer's perspective
• Seasonal, permanent and growing working capital funding needs
• Retailer's chain vs. manufacturing operation supply chain vs trading house

Module Two - Financing and investing activities

• Investment decisions and impact on longer term credit standing of the company
• Financing needs (short term revolving vs. long term amortising), debt repayment capacity and refinancing

Module Three - Funding strategies

• Criteria which drive decision making:
  • Access to various forms of trade finance: parties involved, trade flows and supply chain, costs and benefits, local regulatory provisions
  • Alternative funding sources: traditional credit products, market imperfections allowing pricing arbitrage
  • Balance sheet implications (including off-balance sheet)
• Potential product solutions: cost and management systems needed for end-to-end deal execution to support their choice

Module Four - Documentary letters of credit

• Identify and quantify trade finance needs for facilitating trade flows and managing underlying exposures
• Sample client scenario: a company with a purchase or sale contract with limited knowledge of counterpart's creditworthiness and track record
• Product solutions: structure and pricing differences between irrevocable, confirmed and revolving credits

Module Five - Back-to-back and transferable credits

• Identify and quantify trade finance needs for facilitating trade flows with several players in the chain
• Sample client scenario: a trading company sourcing commodities from one Seller and onward selling the same to an unrelated Buyer with the objective of preventing disclosure of either to the other party
• Product solutions: structure and pricing differences between back-to-back and transferable credits