Euromoney Audit Training

A 5 day course, covering all aspects of international trade and commodity finance from a practical viewpoint. Heavy emphasis is placed upon risk assessment and problem solving techniques, through a clear understanding of a customer's trade cycle. While each of the banking products is dealt with in detail, great attention is paid to the effective and appropriate use of these mechanisms in meeting the customer's needs, with a view to
generating remunerative and controllable business for the bank. The course is highly interactive and centers around a variety of case studies, mostly based upon live files.
 
By the end of the course participants should be able to:

• Use trade finance 'jargon' with some comfort
• Understand the mechanics of the most commonly used instruments
• Identify the key areas of risk for the bank
• Provide meaningful solutions for trade related issues
• Set up structured facilities that provide monitoring and control capabilities
  
  

DAY 1

• Trade Finance – an alternative to balance
sheet lending
• The impact of Incoterms in the trading
environment
Short exercise
• Understanding and using drafts/
promissory notes
• Draft discounting – accelerating the
cashflow – the value of avalised drafts
• International trade documentation –
focus on documents of title
• Payment terms – appreciating the
customer’s risk awareness
• Documentary collections –
understanding the mechanics
• Effective use of collections for short
term finance
Case study

DAY 2

Documentary credits
• Basic operations and risk appreciation
• Revocable, irrevocable, unconfirmed and
confirmed credits
• Sight, term, negotiation and deferred
payment credits
• Discounting and advancing funds
• Silent confirmations
• Syndicated credits
• Revolving credits
• Review of UCP 600
Case study
Controlling credit exposure in
documentary credits – formulating
a limit
• Back to back credits
• Risk evaluation
• Structural issues
• Formulating a proposal
• Booking procedures
• Transferable letters of credit
• Working with UCP 600
• Pricing considerations
• Controlling the transaction
Case study

DAY 3

• Supporting export contracts – the use of bonds, guarantees and standby credits
• Bid, performance advance payment and retention bonds
• Legal jurisdiction and expiry date issues
• Opportunity spotting
• Understanding ISP 98
Case study
• The forfaiting market
• Styles and structures
• Discounting mechanisms
• The secondary bill market
• The value of without recourse financing
• Getting a deal approved
• Understanding and explaining the trade cycle
• The use of time lines
• Assessing and appreciating funding gaps
Case study
• Factoring and invoice discounting
• Financing open account transactions
• The role of factoring companies
• Invoice discounting versus full service factoring
• Short term credit insurance
• Assessing the extent of cover
• Risk appreciation
• Financing with credit insurance support

DAY 4

• Commodity finance overview
• Assessing the value of collateral and receivables
• Looking beyond the balance sheet
• Available documentation – taking and retaining title
• Pre-export finance
• Risks relating to grower/producer finance
• Assessing the country risk
• Understanding the trade flows
• The use of red and green clause credits
Case study
• Financing the commodity trader
• Appreciating supply and delivery routes
• Assessing the quality of the trade
• Control in a warehousing environment
• Tolling transactions
• The use of Letters of Indemnity
Case study
• Financing the end user
• Source and reliability of supplies
• Understanding the manufacturing process

DAY 5

• Commodity futures
• Understanding hedging techniques
• The role and value of the exchanges
• Supporting a customer’s activities
Video – The activities of a
commodity exchange
• Countertrade techniques
• Understanding structural differences
• The effective use of escrow accounts
• The potential role for the banker
• Assessing the viability of a transaction
Case study
• Fraud in Trade and Commodity Finance
• Common problem areas
• Sources of assistance
• High profile examples and lessons to be learnt
Case study
• An overview of Export Credit Agencies
• Medium/long term finance
• Risk coverage and basic mechanisms
• Covering the residual risks
• Subsidised financing
• Course summary and close

 

• Graham Bull

  Graham Bull has over 25 years experience in the banking industry, 19 of which were devoted to the international trade finance and correspondent banking sectors.
  
  The bulk of Graham's banking career was spent with Bankers Trust Co, as a Vice President in the trade banking division, where he conducted business throughout Europe, Africa and the Middle East. He specialised in practical problem solving for major corporates and commodity traders, and carries those skills into his present day training and consultancy work.
  
  For over 12 years Graham has worked as a consultant responsible for international trade courses. In all, Graham has provided training courses in over 30 countries.

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

Trade Finance Structures for Commodity Supply Chains - Miami

24-27 Jul 2012 (Miami, United States)