Letters of credit
A practical guide to letters of credit
A practical guide to structuring and using letters of credit.
The workshop will provide attendees with a practical understanding of letters of credit, the various types, the tools required to achieve the best structure, how to prepare and present conforming documents and get paid on first presentation.
The intermediate and advanced courses also provide a detailed overview on pre and post shipment financing tools using letters of credit, working with UCP600 and ISBP and the opportunity for delegates to test their knowledge by checking sets of documents and participating in role play.
Entry level 1 day, intermediate level 2 days, advanced level 3 days
Who Should Attend?
Companies, bankers, lawyers, freight forwarders and accountants.
The course is suitable for everyone involved in the letter of credit process – to include sales, finance, operations, logistics, administration, credit risk and compliance.
- What a letter of credit is, how it works and when it should be used
- Parties to a letter of credit
- Overview of the types of letter of credit to include:
- Red clause*
- Green clause*
- Back to back*
- Sight and term letters of credit
- Retaining control and the fundamentals to getting paid
- Confirmation, commitment to negotiate and silent confirmation
- Discounting/negotiating letters of credit – with or without recourse?
- Preparing and presenting documents to the bank
- Discrepancies; implications, common problems and how to deal with these
- Bank charges
- UCP 600 and ISBP*
- Practical case studies
- Role play and checking of document exercises*
- Letter of credit structured template and checklist
- Using letters of credit for pre-shipment finance*
- Back to back letters of credit*
Intermediate and advanced courses only*