Letters of Credit Course
Explore International Trade Payment Methods
Getting paid in full and on time is the ultimate goal for each export sale. In this course you will discuss payment methods for your international trade transactions. Explore several payment methods and find the best suited to your needs. You will learn the basic terminology and significance of various documents, and learn how to prevent and handle discrepancies. This Letter of Credit course will help ensure exporters receive payment for their shipments, get paid faster, and reduce bank fees. Importers will learn about their suppliers’ documentary requirements.
Risk Management for Shipments:
- International trade presents risks, which may cause uncertainty over the payments between the exporter (seller) and importer (buyer).
- For exporters, any sale is a gift until payment is received.
- Exporters may not attract buyers if they expect to be paid in full in advance.
- For importers, any payment is a donation until the goods are received.
What You Will Learn
The Different Types of Letters of Credit
Most common types:
- Irrevocable Letters of Credit
- Confirmed Irrevocable Letters of Credit
- Revocable Letters of Credit
- Standby Letters of Credit
- Transferable Letters of Credit
- Revolving Letters of Credit
In our Letters of Credit course, the instructor will guide you through the process of reviewing letters of credit using checklists and sharing sample documentation prepared for the letters of credit examples in the reference book included with course. The review and the samples are supplemented by the International Chamber of Commerce’s rules for letters of credit known as UCP 600. These are the rules the evaluating banker will use to determine whether or not there are discrepancies in the documentation presented to the bank. If the bank determines there are discrepancies, of course there are delays and fees imposed by the bank.
This practical approach to examining letters of credit in the context of an export sale or an import purchase order has been found to be very useful to those who have attended. Throughout the day, our instructor will answer your questions as well as provide you with an in-depth review of how to structure a letter of credit to you and your firm’s advantage. Each letter of credit is unique, each banker’s approach to reviewing your documentation is unique even though there are uniform rules to be used to evaluate letter of credit documentation. Learn about the rules and the language that can protect your firm and save you time.
Learn to comply with export and import Letter of Credit requirements to ensure prompt payment for your shipments or documentation needed for your import transaction. Learn why a bank could declare a document discrepant when a number has been rounded up (or down)!
- Selecting the most appropriate payment method for your company, and
- Compare costs and risks of various Letter of Credit options
Included in every registration is a detailed reference book with export and import letter of credit examples, checklists, documentation samples, and rules. The rules are used by banks to decide whether or not to pay the seller based on the documentation submitted:
- Uniform Customs & Practice for Documentary Credits (UCP 600)!
- International Standby Practices (ISP98) for standby letters of credit
Our Letters of Credit Course Will Benefit Importers and Exporters
✔︎ Our Letter of Credit course is excellent for beginners and serves as a refresher and update for experienced professionals. Our instructor will set the course level based on attendees’ needs.
✔︎ Previous attendees work in the following areas: Employees of Exporters and Importers who are involved in Purchasing, Sales, Marketing, Logistics, Traffic, Shipping, Customer Service, Accounting, Credit Managers, Controllers, Business Support Specialist, International Managers, Engineering, and Legal personnel will benefit from this course.
✔︎ Learn how to communicate with your Customs Broker or Freight Forwarder regarding your import or export transaction under a letter of credit.
✔︎ Are you a Customs Broker or a Freight Forwarder? If yes, then learn about your customers’ obligations regarding documentary requirements and time limits imposed on them stated in a letter of credit.
Customer Testimonials from Letters of Credit Course
NO SALES, NO GIMMICKS, JUST LEARNING!
* Small Class Size – Time for discussions / Q&A
* Live INTERACTIVE We encourage class participation! You may ask questions throughout the session.
* Book included in price – Great reference to keep at your desk!
* Earn continued education credits (approved for NCBFAA & NASBITE)
* Best in-class Instructors, with real-world experience, which means they can relate to your issues
International Letters of Credit Course Agenda
8:30 a.m. to 4 p.m. (Central Time) – Webinar
Reference book Letters of Credit in International Trade
- INTRODUCTION/DECISION CRITERIA
- Decision Making and Payment Methods
- Risk to International Trade Payment
- Traditional Payment Methods
- LETTERS OF CREDIT AS METHOD OF PAYMENT
- Parties to the Letter of Credit
- Payments under Letters of Credit
- Costs and Benefits
- Types of Letters of Credit
- REVIEW OF L/C PROCEDURE AS EXPORTER AND AS IMPORTER
- Instructions for the Letters of Credit
- Checklist for Letters of Credit
- Document Preparation and Presentation
- LOOK AT VARIOUS TYPES OF L/C’s
- Revocable or Irrevocable
- Confirmed and Unconfirmed
- Restricted Letter of Credit
- SPECIAL TYPES OF LETTERS OF CREDIT
- Variations You Will See
- Revolving – Standby – Transferable
- Red Clause, Green Clause
- Time Drafts and Bankers Acceptances
- UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS — RULES OF THE ARTICLES AND NOTE ON EACH ARTICLE
- International Standard Banking Practices (ISBP)
- Commentary on the UCC of the United States NOTE: Discussion on UCP 600
- TRANSACTION REVIEW – EXPORT
- Amendment to the Letter of Credit
- Documents Checklist (Commercial Invoice, Bill of Lading, Packing List, Insurance, etc…)
- Letter of Transmittal to Bank
- TRANSACTION REVIEW – IMPORT
- Parties Agree to Letter of Credit as Payment Method
- Buyer Applies for Letter of Credit
- Seller Receives and Accepts the Credit
- Nominated Bank Review Documents
- Issuing Bank Exchanges Documents for Payment
- Importer Picks up Goods
- CASE STUDY ON AN EXPORT LETTER OF CREDIT
- NON-TRADITIONAL PAYMENT METHODS