Overview / Is this course right for me?
This course is suitable for those working in international trade and have been asked to get involved in the management of letters of credit.
The training will review all methods of payment available when trading internationally including their benefits and risks associated with receiving payment. A letter of credit guarantees payment to a seller however only if documents are compliant – this course will simply guide you through the rules of managing a letter of credit, making sure documents are compliant and payment is made. A ‘real’ letter of credit will be available providing a ‘hands-on’ practical training session.
What will I learn?
- Why it is important you choose the right payment method
- Advantage and disadvantages of each payment method
- How to mitigate foreign currency transactions
- How Incoterms Impact Letters of Credit
- Letter of Credit terminology
- The UCP 600 Rules and ISBP
- Roles and responsibilities for the Buyer and Seller when using a Letter of Credit
- Types of Letter of Credit
- How payments are made through the banking system
- How to prepare the necessary documentation and the interaction required with Freight Forwarders
- Hints and tips to avoid discrepancies and minimise additional charges using a simple checklist
What is the Course Content?
- Incoterms® 2020 & their interaction with Letters of Credit
- Methods of Payment
- The Risk Ladder
- Foreign Currency Transaction Mitigation
- Advance Payment, Documentary Collections & Open Account
- How the Letter of Credit works – Management & Presentation
- Advantages and Disadvantages
- Types of L/Cs
- Understanding the Rules (UCP600) and ISPB
- Best Practice for Letters of Credit – Hints and Tips
The course will run from 09:30 to 16:00 with morning and afternoon breaks and 45 minutes for lunch.
2020 dates available on request
Cost and Booking
Cost is £295 (plus VAT) per delegate and includes all refreshments and a buffet lunch.
In-house training costs can be provided on request.