Trade Finance Management
Banking as we know demands a significant level of intricacy, as any slight error or incongruity could amount to a considerable financial disaster. Therefore, reputable firms require their employees to possess impeccable stance. On that note, LSBF has made it incumbent on themselves to churn out candidates with immaculate knowledge and prowess to perform exceptionally in trade finances, through our Trade Finance Management training programme forthcoming. Hence, for any progressive banks, the ability of its people to grasp key business drivers, adopt best practices and embrace innovation have been ever more critical for them to create value for its stakeholders and succeed in their operating markets.
The course will provide a full explanation of international trade finance concepts, products, players, compliances, fraud, and risk management. After completion of this course participants will be able to understand and analyse their customers’ supply chain and cash flow needs to offer suitable trade financing solutions for their needs.
Participants will gain knowledge of different trade finance instruments and documentation required. They will also learn to perform the checks, compliances and manage risks associated with various instruments. The program will also cover latest trends, practices, policies, international standards and conventions and their impact on trade finance instruments and agreements. The course will provide opportunities to apply the knowledge gained through evaluation of case studies relating to structuring trade finance transactions.
▪ Any professionals who are keen to learn the structured trade finance business
▪ Corporate treasurers, finance directors, relationship managers, senior management in corporate lending, and sales teams looking at how to apply banking instruments into corporate finance sector
▪ Bankers and account managers engaged in structuring trade financing deals
▪ Professionals, executives, and managers working in middle office functions such as audit and operations, credit risk management, responsible for ensuring proper execution, management, and financing of commodity trades.
▪ Relationship managers and bankers who want to learn the financing aspects of commodity trades
Each participant will be presented an electronic certificate on completion of the course.
- Understand the risks involved in real international trade finance
- Learn to assess the impact of changes in regulations on the trade finance agreements
- Learn to advise on discrepancies in trade finance documentation and how to ensure the
operational processes are adhered to
- Determine areas to develop or modify the procedures for effective risk management
- Enhance decision making capability of the participants
- Learn to look for suspicious transactions and potential frauds in the trade finance
- Improve their ability to understand the management ways in institutional and cultural
- Understanding the social responsibility of default in letter of credit and collection
Course Overview and Introduction to Trade Finance
- Understand the Evolution and Role of trade finance in the Economy.
- Discover the Global Trends.
- Understand the changes introduced due COVID-19 Scenario.
- Explain the role of commercial banks in trade finance?
- Understand the risk management systems used in Trade Finance Domain
Incoterms® rules 2020
- Understand the Role / Risk & Responsibilities of Importer & Exporter while checking the
INCOTERMS in the documentation
- Demonstrate the understanding of proper usage of appropriate INCOTERMS
- Understand the Risks of making an error on the PO/Invoice.
- Explain the key differences to Incoterms® 2010
- Understand the importance of Incoterms® from a trade financing perspective
Trade Finance Instruments
- Discuss the LC Mechanism
- Understand the commonly used Types and forms of LCs
- Understand the Documentation under LC transactions and Relevance of UCP 600-
Summarise of key articles on UCP-600
- Identify the discrepancies in trade documentation and understand how to deal with the
- Discuss practical problems faced by member companies while handling various LC
Case study discussion - MSTC Limited
- Examine the documents and transactions and understand the risks involved.
- Understand how to find the discrepancies and the obligation of
- banks in case of discrepant documents
- Article 21: UCP 600
Import and Export Documentation
- Concepts – Exports, Export Documents, Imports, Import Documents
- Financial Documents, Transport Documents, Regulatory Documents and Commercial
Documents. Pre & post shipment Procedure and Documentation
- Customs Procedures
- Procedures & Submission of Documents to Banks
- Trade documentation: Bill of lading, Airway bill, Insurance certificate/ policy, Packing list,
irrevocable letter of credit, application of letter of credit, pre-shipment inspection, LOC
Working Capital and Structured Financing
- Understand the uses, types, benefits, and parties involved in Structured finance.
- Examine how Credit Assessments: 5 C’s are done.
- Understand the nature of debt and implications.
- Identify the documents and risks involved.
- Recourse and re-purchase events
- Determine the amount to finance – prepayments, dilutions, and retentions
- Explain the types of receivables finance and their differences: Specific debt purchase:
insured and uninsured, Factoring, invoice discounting.
- Understand the role of Export Credit Agency (ECA)
- Describe the Commodity trade finance and types of commodities involved
Cross Border Trade Finance: Risk hedging, Trade Finance Fraud Case
- Discuss the Risks involved in - Pre-export and prepayment
- Understand how banks do Risk appreciation and mitigation
- Understand and construct a trade cycle timeline to evaluate type, amount, and duration of
- Appreciate why structured trade finance is an alternative to traditional lending assessment
- Understand the key aspects and structuring techniques of receivables finance
- Understand how to Structure a self-liquidating trade finance facility
- Describe how banks monitor and exercising control on cash flows.
- Describe how Cash Flows reports are prepared.
- Appreciate the financing structures and risk management in structured commodity finance
- Describe major challenges faced by banks
Trade Finance Fraud Case Studies
- Analyse Financial Crime Risks and how to mitigate those
Digital Trade Finance / Fintechs / Blockchain
- Understand the latest trends and new infrastructure, platforms used for trade finance.
(Digital Trade Finance / Fin-techs / Blockchain)
Summative Exam, Wrap Up, Feedback Surveys
- All topics- Comprehensive
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Contact a programme advisor by calling
+65 6580 7700