Letters of Credit

As a payment method for your international transactions

International Letters of Credit Course

A letter of credit is a binding agreement used to facilitate payment through a bank for an international trade, a sale between the seller and the buyer.

Imagine not getting paid for your international sale through a letter of credit! Unfortunately, it happens.

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)!

Learn the basic terminology and significance of various documents, and learn how to prevent and handle discrepancies. Everyone involved in the international sale or purchase will benefit from this Letter of Credit course. 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. Plus, discuss:

    • 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!
Read Customer Testimonials>>See all Course Topics>>

The Different Types of Letters of Credit


Most common types:

  • Irrevocable Letters of Credit
  • Confirmed Irrevocable Letters of Credit
  • Revocable Letters of Credit

Special types:

  • Standby Letters of Credit
  • Transferable Letters of Credit
  • Revolving Letters of Credit

Consider the Letter of Credit Course as it will….

  • Improve your Understanding of letters of credits
  • Learn about avoiding documentary discrepancies
  • Exposure to different types of Letters of Credit
  • Answer questions such as “What are those numbers down the side of a letter of credit?” or “What is the ’21 day rule’?”

Our Letters of Credit Course Will Benefit Importers and Exporters

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.

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.

Employees of Exporters and Importers who are involved in Purchasing, Sales & Marketing, Logistics, Traffic, Customer Service, Accounting, Credit Managers, Controllers, 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.

Certificate Issued Upon Completion

International Letters of Credit Course Agenda

8:30 a.m. to 4 p.m. – Seminar
8:30 a.m. to 4 p.m. (Central Time) – Webinar
Reference book Letters of Credit in International Trade
  1. INTRODUCTION/DECISION CRITERIA
    1. Decision Making and Payment Methods
    2. Risk to International Trade Payment
    3. Traditional Payment Methods
  2. LETTERS OF CREDIT AS METHOD OF PAYMENT
    1. Parties to the Letter of Credit
    2. Payments under Letters of Credit
    3. Costs and Benefits
    4. Types of Letters of Credit
  3. REVIEW OF L/C PROCEDURE AS EXPORTER AND AS IMPORTER
    1. Quotation
    2. Instructions for the Letters of Credit
    3. Checklist for Letters of Credit
    4. Document Preparation and Presentation
    5. Discrepancies
  4. LOOK AT VARIOUS TYPES OF L/C’s
    1. Revocable or Irrevocable
    2. Confirmed and Unconfirmed
    3. Restricted Letter of Credit
  5. SPECIAL TYPES OF LETTERS OF CREDIT
    1. Variations You Will See
    2. Revolving – Standby – Transferable
    3. Red Clause, Green Clause
    4. Time Drafts and Bankers Acceptances
  6. UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS — RULES OF THE ARTICLES AND NOTE ON EACH ARTICLE
    1. International Standard Banking Practices (ISBP)
    2. Commentary on the UCC of the United States NOTE: Discussion on UCP 600
  7. TRANSACTION REVIEW – EXPORT
    1. Amendment to the Letter of Credit
    2. Checklists
    3. Documents Checklist (Commercial Invoice, Bill of Lading, Packing List, Insurance, etc…)
    4. Letter of Transmittal to Bank
  8. TRANSACTION REVIEW – IMPORT
    1. Parties Agree to Letter of Credit as Payment Method
    2. Buyer Applies for Letter of Credit
    3. Seller Receives and Accepts the Credit
    4. Nominated Bank Review Documents
    5. Issuing Bank Exchanges Documents for Payment
    6. Importer Picks up Goods
  9. CASE STUDY ON AN EXPORT LETTER OF CREDIT
  10. NON-TRADITIONAL PAYMENT METHODS

Customer Testimonials from Letters of Credit Course

“My role basically receives LC’s and pass along to our Accounting Department for approval. Only later do I get involved with documentation to avoid discrepancies. Now that I’ve had this training I no longer fear the LC and will have a better understanding of how to prepare the correct documentation. The instructor did a wonderful job of getting all of the participants involved. – International Sales Support Representative”
“I have L/C payment with customers overseas, so it is very helpful to know how to start and proceed “
“It will help me process and review the next letter of credit with more confidence. “
“This class will be a huge help in modifying the LOC instructions and check lists to send out organization wide.”
“This will allow us to collect international payments much faster. This is very important for us as it is such a large percent of our total business”

$595.00
Per Person

Small Class Size
6.5 Hrs Teaching
Printed Book Included
Certificate of Completion
Digital Badge
Earn Education Credits

Full-Day Class

Seminar Time: 8:30am – 4pm Local Time
Webinar Time: 8:30am – 4pm CT
Two 15min breaks (am/pm), 1hr lunch

Schedule:

(click date details)

LocationDate
WebinarJul 15th
WebinarSep 20th
WebinarOct 15th
Chicago, ILNov 16th
WebinarDec 9th

Letters of Credit in International Trade
Authors:
Petersen & Novak

Book included with registration!
Can’t attend? Click here to purchase book

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