Letters of Credit Course
Full Day Course
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 International Trade Payment Methods
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.
LETTERS OF CREDIT
8:30 a.m. to 4:00 p.m. – Seminar
8:30 a.m. to 4:00 p.m. (Central Time) – Webinar
Reference book Letters of Credit in International Trade: A User’s Guide
I. RISKS TO INTERNATIONAL TRADE PAYMENTS
- Risk mitigation
II. METHODS OF PAYMENT
- Cash in Advance, Collection Basis, and Open Account
- Consignment, Credit Card
- Countertrade and Barter
III. DEFINITIONS OF LETTERS OF CREDIT
- Commercial Contract vs. Letter of Credit
- Types of Letters of Credit
- Fees Associated with a Letter of Credit
- Standardization of Letter of Credit
IV. IMPORT LETTERS OF CREDIT
- Application and Agreement
- How to Fill Out the Application
- Conditions of the Credit
- Negotiation for Payment
- Case Study
V. EXPORT LETTERS OF CREDIT
- Opening and Advising an Export Letter of Credit
- Unconfirmed Letter of Credit: Bank Specified
- Steps in Reviewing and Export Letter of Credit
- Obtaining Payment
- Assignment of Proceeds
- Case Study
VI. SPECIAL TYPES OF LETTERS OF CREDIT AND TRADE FINANCE
- Standby Letters of Credit
- Evergreen Clause
- Revolving, Back-To-Back, Transferable, and Red Clause Letters of Credit
- Using Banker's Acceptances
- Export Working Capital Financing
- Woking Capital Loan Programs
- Foreign Exchange Risk Management
- Purchase Order Financing
VII. UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS
- UCP 600
- eUCP Version 2.0
- International Standby Practices ISP98
Two 15 min breaks & 1 hour lunch
Webinars: 8:30AM-4:00PM CT
Seminars: 8:30AM-4:00PM Local Time
You ask, we answer
If you have any other questions, we are here to help. Contact us!
- 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.
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.
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
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