INTRODUCTION/DECISION CRITERIA

• Letters of Credit as Method of Payment
• For the Exporter - Why; why not-
• For the Importer - Why; why not-
• Selection of a Method of Payment
• Marketing and Sales Considerations
• Credit and Country Risk Analysis
• Appetite for Risk
• Product Type, Sales Cycle Issues e.g. Capital Goods
• Cost Structure of Company as a Decision Factor

COMPARE TO L/C (FLOW, RISK, COST,ADMINISTRATION)

• Documentary Collection
• Direct Collection
• Cash in Advance and Open Account

REVIEW OF L/C PROCEDURE AS EXPORTER AND AS IMPORTER

• Receipt, Review, Preparation, Submission, Payment
• Role of Exporter's Bank
• Application, Payment, Receipt of Documents
• Role of Importer's Bank
• Importer Financing and Credit Issues

LOOK AT VARIOUS TYPES OF L/C's, WITH EXAMPLES

• Discussion of Timing of Transactions
• Wording of the Draft on each Type of L/C

SPECIAL TYPES OF LETTERS OF CREDIT, WITH EXAMPLES

• As Exporter and as Importer
• Revolving
• Standby
• Transferable

UCP 600, ARTICLES AND NOTE ON EACH ARTICLE

• Liability of Banks, Recourse, Legal Environment
• Commentary on the UCC of the United States

TRANSACTION REVIEW - EXPORT LETTER OF CREDIT WITH COMMENTS ON UCP

• Sight Draft and Time Draft with L/C wording for Discounting
• Bill of Lading - How to Control Goods
• Packing List and Commercial Invoice
• Discussion of Documents/Discrepancies -Why; How to resolve
• Transaction Review; Import Letter of Credit

CASE STUDY ON AN EXPORT LETTER OF CREDIT
OVERVIEW OF NON-TRADITIONAL METHODS

• Factoring
• Lease Finance
• Sale of Insured A/R (Export Credit Insurance)