Trade Finance Fundamentals

About the Course

Trade Finance is the financing of goods or services in a trade or transaction from a supplier to the end buyer, and it accounts for 3% of global trade, worth some $3TN annually. ‘Trade Finance’ is an umbrella term that includes various financial instruments that an importer or exporter can use.

Trade Finance (also known as Supply Chain Finance and Import & Export Finance) is a massive driver of economic development and helps maintain the flow of credit in supply chains. Managing cash and working capital is critical to the success of any business. It is a tool to unlock capital from a company’s existing stock or receivables. It is estimated that 80-90% of global trade, worth $10 trillion annually, relies on trade and supply chain finance. Trade finance can also help strengthen the relationship between buyers and sellers, increasing profit margins. It allows a company to be more competitive.

This 5-day interactive Trade Finance Fundamentals virtual training course provides the delegates with the importance and benefits of trade finance for all stakeholders and the products and mechanisms of the trade finance process, including the risk assessment and mitigation strategy.

Core Objectives

The delegates will achieve the following objectives:

• Comprehension of the importance and benefits of trade finance
• Understand how trade finance works
• Compare key trade finance instruments and types that are used globally
• Identify standard payment terms used in global trade
• Determine how to assess the risks associated with trade finance
• Learn how to secure trade finance and recommend risk mitigation solutions

Training Approach

This virtual training course will use proven learning techniques to ensure maximum understanding, comprehension, and retention of the information presented. It will follow a participative workshop format that focuses on developing practical skills that delegates can apply in real-life business situations on return to their organisation.

The Attendees

Trade Finance deals typically involve at least three parties: the exporter (seller), the importer (buyer) and the financier, as transactions should have the following features: An underlying supply of a product or service and a purchase & sales contract.

This virtual training course will be valuable to professionals, including (but not limited to) the following:

• Financial Controllers
• Procurement Professionals
• Financial Analysts
• Business Development Managers
• Financial Managers
• Management Accountants
• Business Analysts
• Treasury Professionals

Daily Discussion

DAY ONE: TRADE FINANCE FUNDAMENTALS

• What is Trade Finance?
• Trade Finance & International Trade
• What are the benefits of trade finance?
• Why do SMEs need trade finance products?
• How does trade finance work?

DAY TWO: TYPES & PAYMENT METHOD OF TRADE FINANCE I

• Types of Trade Finance
• Trade Credit
• Purchase Order (PO) Finance
• Receivables Discounting
• Invoice Factoring
• Invoice Discounting
• Reverse Factoring
• Term Loans
• Other Types of Business Finance
  • Equity Finance
  • Leasing and Asset-backed Finance
  • Asset Finance

DAY THREE: TYPES & PAYMENT METHOD OF TRADE FINANCE II

• Methods of Payment in Trade Finance
  • Cash Advance
  • Letters of Credit (LCs)
  • Documentary Collections (DCs)
  • Open Account
• Pre-shipment, Post-shipment, and Supply Chain Finance
  • Pre-shipment Finance
  • Post-shipment Finance
  • Supply Chain Finance (SCF)

DAY FOUR: RISKS AND CHALLENGES IN TRADE FINANCE

• Product Risks
• Manufacturing Risks
• Transport Risks
• Currency Risks
• Credit Risk
• Other Notable Trade Risks
• How to secure trade finance?

DAY FIVE: TYPES OF TRADE FINANCE LENDERS

• Corporate & Commercial Banks
• Alternative Finance Providers & Non-Bank Lenders
• Development Finance Institutions (DFIs)
• Export Credit Agencies (ECAs)
• Receivables Financing