Receiving Payment and Using Letters of Credit

Full Day Course

• Understand the main international payment methods, their risks, and the impact of foreign currency
  
• Identify documentation and costs to consider when quoting
  
• Explain the pros and cons of Advance Payment, Open Account, Documentary Collection, and Letters of Credit
  
• Describe D/P and D/A collection processes, including how Bills of Exchange work
  
• Understand what a Letter of Credit is, how it works, and how to manage it successfully:
  
  • Confirmed vs. Unconfirmed
    
  • UCP 600 & ISBP
    
  • Key dates, SWIFT messages, and payment timelines
    
  • Discrepancies, amendments, and document preparation
    
• Recognise different types of L/Cs and when to use them: Transferable, Red Clause, Standby, Revolving, Back-to-Back
  
• Identify smart uses of L/Cs, including:
  
  • Assignment of proceeds (Article 39)
    
  • Tolerances and flexible terms (Article 30)
    
• Apply Incoterms® in the context of L/Cs and payment documentation
  
• Take part in a practical exercise to apply your learning
  

Half Day Course

• Methods of Payment & the Risk Ladder
  
• Documentation & extra costs
  
• Review of payment and risks relating to:
  
  • Advance Payment
    
  • Documentary Collections
    
  • Open Account
    
  • Letters of Credit
    
• What a Letter of Credit is and how it works
  
• Opening and drafting an L/C
  
• Formatting, Incoterms®, and insurance
  
• The Letter of Credit process
  
• Important “need-to-knows”
  

You’ll leave with the knowledge and tools to choose the right payment method, manage Letters of Credit accurately, and avoid payment delays or losses.