Case Studies and Exercises

Case studies are key to our ethos of highly practical training.

Each of our courses contain extensive use of exercises and cases studies. These are based on real-life examples, or synthesised from actual situations to create the optimum learning experience.

Detailed case study solutions are shared with the delegates during the feedback sessions.

Our library of more than 70 case study and exercise titles is shown below.

DOCUMENTARY COLLECTIONS

COLLECTION SCHEDULE: completion

Completion of a collection schedule of instructions conforming to the provided case study

BILL OF EXCHANGE: completion

Completion of a blank bill of exchange using information from the collection schedule

UNDERTAKING TO PAY: completion

Preparation of the drawee’s undertaking to pay from the collection schedule of instructions

FINANCIAL & COMMERCIAL DOCUMENTS: categorisation

Using the URC rule definitions, documents are listed into the correct category

MISSING COLLECTION INSTRUCTIONS: completion

Identification of missing information & instructions in a collection schedule

COLLECTION INSTRUCTION: interpretation

Missing information & instructions are interpreted according to the URC rules

PARTIAL PAYMENT: application

Interpretation of how partial payment should be handled under documentary and clean collections according to the URC rules

SWIFT MESSAGE TYPES: selection

Matching SWIFT message types to the inward and outward collection operational cycle

ADVANCE AGAINST COLLECTIONS: structuring

Poco Pipes
Calculation of the facility requirement and structuring the terms of financing. Risk and benefit appraisal in comparison with bank overdraft

RELEASING DOCUMENTS IN TRUST: risk appreciation

Simply Red Roofing
Use of a ‘documents in trust’ facility and management of risk

BANK AVAL

RISK APPRECIATION: structuring a solution
Marillion Marvels
Formulation of a risk mitigation and financing solution using bank aval

DISCOUNT PURCHASE: due diligence & process
Dire Straits
Consideration of a request to purchase an avalised bill of exchange. Identification of the risks and further information required to evaluate the proposition

LETTERS OF CREDIT

CREDIT FACILITY: calculating the facility requirement

Stereophonics
Calculation of the letter of credit facility requirement for an importer

LC APPLICATION FORM: completion

Bowie Imports
Examination of a completed import letter of credit application form. Identification of technical issues and whether the application complies with the facility conditions

IMPORT LETTER OF CREDIT: structuring the terms

Requirement to structure the terms of an import letter of credit. Mitigation of risk for the applicant

PRESENTATION PERIOD: calculation

Identification of issues resulting from the time-flow of original bills of lading; implications of late presentation. Calculation of the optimal presentation period

EXPORT LETTER OF CREDIT: structuring the terms

Requirement to structure the terms of an export letter of credit. Mitigation of risk for the beneficiary

EXPORT LETTER OF CREDIT: risk mitigation

Lou Rawls Machinery
Evaluation of whether an export letter of credit is suitable to mitigate risk and facilitate financing for the beneficiary’s manufacture and shipment of a machine. Identification of technical issues and beneficiary risk exposure. Proposal for letter of credit amendment

DISCOUNT FINANCE: calculation

Calculation of the net amount payable to a letter of credit beneficiary following a presentation of complying documents and request for discount finance

UNCONFIRMED CREDIT: sales opportunities

Sheeran Enterprises
Identification of sales opportunities for the advising bank on an unconfirmed LC

DOCUMENT CHECKING: compliance with ISBP

Examination of selected documents to identify whether they comply with international standard banking practice (ISBP)

PRESENTATION EXAMINATION: compliance with LC terms & UCP

Examination of a full documentary presentation under a letter of credit. Identification of discrepancies

SWIFT MESSAGE TYPES: selection

Matching SWIFT message types to the import and export letter of credit operational cycle

TRANSFERABLE LETTER OF CREDIT: transfer changes

Examination of a request to transfer a letter of credit. Identification of transfer changes allowed by the UCP rules

REVOLVING LETTER OF CREDIT: facility calculation

Neil Diamond Jewellery
Credit facility calculation for a cumulative and non-cumulative revolving letter of credit.
Identification of risk for the applicant and issuing bank

SYNTHETIC LETTER OF CREDIT: risk appreciation

Armatrading Commodities
Examination of a synthetic letter of credit transaction. Identification of the risk aspects. Consideration as to whether the LC should have been issued

NON-BANK ISSUER LETTER OF CREDIT: risk appreciation

Sparks Electrical
Examination of the terms and conditions of a ‘non-bank issuer’ letter of credit. Identification of the risks. Consideration of a request to negotiate complying documents

BACK TO BACK LETTERS OF CREDIT

BACK TO BACK LETTERS OF CREDIT: structuring the terms

In Excess Traders
Structuring the terms and conditions of the ‘master’ and ‘counter’ credit. Mitigation of risk for the middle-party and the counter bank

STANDBY LETTERS OF CREDIT

STANDBY CREDITS: calculating the required value

Calculating the required value of a standby credit to protect the supplier’s credit risk exposure on the buyer

STANDBY CREDITS: structuring the terms to reduce risk of abuse

Consideration on the course of action resulting from the receipt of a suspicious claim. Identification of how the terms of the standby credit could have been structured to reduce the risk of abuse

DEMAND GUARANTEES

APPLICATION FORM: completion

Completion of a guarantee application form using the provided case study. Identification of sales opportunities for the issuing bank

GUARANTEE REQUEST: risk appreciation

Abba Advances
Consideration of a request to issue an advance payment guarantee. Identification of risk and recommendations to reduce risk exposure

PRIVATE TEXT: clause construction

Review of a private text for guarantee issuance and identification of issues. Recommendation for text amendment/clause inclusion to reduce risk

BACK TO BACK GUARANTEES: structuring to reduce risk exposure

Boston Bonds
Assessment of a request from a middle-party for a letter of guarantee facility. Identification of the risks, formulation of a proposal to reduce risk for the middle-party and minimise bank credit risk exposure. Consideration of the related funding and risk implications in respect of the underlying transaction

RECEIVABLES FINANCE

TYPES OF RECEIVABLES FINANCE: selecting the right solution

Selection of the optimal type of receivables finance for each given scenario

INSURED EXPORT FINANCE: structuring a tailored solution

Traffic Land Cruisers
Structuring an insured receivables finance solution for the sale of vehicles to a buyer in Africa on three years trade credit

SALES INVOICE FINANCE: structuring a whole turnover solution

Coldplay Refrigeration
Formulation of a whole turnover receivables financing facility. Identification of risk, calculation of the facility amount, and required documentation for invoice finance drawdown

OFF-BALANCE SHEET FINANCE: determining factors

Consideration of the factors which determine whether receivables debt purchase and prepayment constitute a ‘true sale’ and may thus be de-recognised from the seller’s balance sheet. Off-balance sheet finance benefits for the seller

CREDIT INSURANCE

CREDIT INSURANCE: evaluation of the terms and cover

In-Excess Traders
Evaluation of the key terms of a schedule of credit insurance to support trade and receivables finance. Identification of risk. Alignment of finance to the nature and extent of insured cover

TRADE & WORKING CAPITAL FINANCE

WORKING CAPITAL MANAGEMENT: importance of DSO & DPO ratios

Calculation and assessment of DSO & DPO ratios. Identification of potential trade risk and liquidity issues. Opportunities for trade and receivables finance

WORKING CAPITAL: key corporate drivers

Identification of the financial drivers and priorities of a corporate treasurer. Satisfying risk mitigation and working capital needs with trade and receivables finance solutions

AGED DEBTOR ANALYSIS: importance to the financier

Examination of an aged debtor listing. Assessment of risk (credit, non-conformity of goods, dispute & liquidity risk) and resultant trade & receivables finance opportunities. Identification of further information required to formulate a solution

AGED CREDITOR ANALYSIS: importance to the financier

Examination of an aged creditor listing. Assessment of risk (liquidity pressure, dispute, non-conformity of goods) and resultant trade payables finance opportunities. Identification of further information required to formulate a solution

COMMERCIAL TERMS

INCOTERMS^® RULES 2020: rule selection

Rose Royce
Evaluation of the needs of the seller, buyer and financier, prioritising the Incoterms^® rules in order of preference from a control and risk mitigation perspective

COMMERCIAL TERMS: risk appreciation

The roles of a buyer and seller are assumed in order to determine and to negotiate the key commercial aspects¹ of a trade transaction to mitigate risk.
(¹Incoterms^® rule, credit period, method of payment, and responsibility for contract of carriage & insurance)

COMMERCIAL CONTRACT: identifying risk

ACE Models
Examination of a commercial contract and identification of areas of risk for the seller and financier. Recommendations for amendment to mitigate risk

OPEN ACCOUNT TRADE: developing solutions

Consideration of the needs of the seller and buyer in open account trade. Formulation of solutions to address client needs for risk mitigation and financing

INTERNATIONAL PAYMENTS

INTERNATIONAL PAYMENTS: SWIFT message completion

Review of a payment request and preparation of the SWIFT MT103 and MT202 COV messages

TRADE DOCUMENTS

BILL OF LADING: control over goods

Evaluation of a bill of lading to identify risk for the financier and whether it provides satisfactory control over the goods

CARGO INSURANCE: evaluation

Evaluation of a draft certificate of marine insurance from a financier’s perspective. Identification of issues and proposals for amendment

EXPORT CREDIT AGENCY SUPPORT

TYPES OF ECA SUPPORT: selecting the right solution

Selection of the optimal type of ECA support for each given scenario

APPROVED TRADE PAYABLES FINANCE

APPROVED TRADE PAYABLES FINANCE: risk & benefit appreciation

Stretch Capital
Identification of the financial benefits and risk considerations to the buyer, suppliers, and bank of an approved trade payables supply chain programme. Determination of the optimum solution

STRUCTURED FINANCE

GATHERING INFORMATION: trade proposition evaluation

Preparation of a check-list of information required to assess a trade proposition

TRADE CYCLE: facility calculation

Identification of the funding gap and calculation of the credit facility requirement

TRADE CYCLE TIMELINE: construction & facility requirement

Cutting Crew Garments
Construction of a trade cycle timeline and credit facility requirement based upon the forecast business of a fabric importer, manufacturer, and exporter

PRE-SHIPMENT FINANCE: structuring a solution

Lou Rawls Machinery
Evaluation of a request from a manufacturer for pre-shipment finance and follow on funding for the manufacture, shipment and subsequent installation and commissioning of a machine. Identification of risk to the financier and formulation of a structured trade finance solution

TRADE CYCLE FINANCE: formulating a solution

Travis Meats
Risk appraisal and formulation of a trade cycle financing solution for the importation of frozen chicken meat and its sale on extended trade credit terms

FUNDING THE MANUFACTURER: credit risk appraisal (Part 1)

Aerosmith Machine Tools
Financial and non-financial credit risk appraisal on a proposition to provide pre-shipment finance to a potential client for the manufacture and export of a machine

FUNDING THE MANUFACTURER: receivables solution (Part 2)

Aerosmith Machine Tools
Structuring a receivables solution to provide an acceptable form of repayment to the pre-shipment financier

FUNDING THE MANUFACTURER: payables solution (Part 3)

Aerosmith Machine Tools
Structuring a payables solution to fund the purchase of components for the manufacture of a pre-sold machine

TRADE PROPOSITION EVALUATION: gathering information

Information will be gathered to evaluate the proposition of a client who requires an increase in their credit facilities

FINANCING THE MIDDLE-PARTY: structuring an end to end solution

Argent Handbags
Assessment of a middle-party client request for a standby letter of credit and increase in their overdraft in respect of the purchase of pre-sold goods. Construction of the trade cycle timeline and calculation of the facility requirement. Formulation of a purchase and sale payment and financing structure which minimises credit risk exposure for the bank

FINANCING THE DISTRIBUTOR: structuring trade cycle solutions

ELO Electricals
Identification of risk and formulation of a financing solution for a wholesale distributor throughout its trade cycle covering pre-shipment payables, goods in transit, warehousing, call-off, and FOB sales

STRUCTURED FINANCE: a compelling alternative to the overdraft

Ultravox Lighting
Constructing a compelling trade payables and receivables solution for a prospect company that is sceptical on the use of structured trade & receivables finance. Demonstration of the financial benefits to the company in comparison to traditional overdraft finance

STRUCTURED FINANCE: reducing credit risk exposure

Visage Screens
Structuring a trade financing solution across the exporter’s letter of credit, bank aval and open account receivables transactions in order to reduce the bank’s credit risk exposure to the company

COMMODITY FINANCE

PRE-EXPORT FINANCE: structuring a risk mitigating solution

Brubeck Coffee
Assessment of risks on a pre-export finance transaction. Formulation of a payment structure to mitigate risk

STRUCTURED COMMODITY FINANCE: funding the trade cycle

Toto Copper
Identification and consideration of the risk aspects of a commodity transaction.
Formulation of a structured solution to validate and control the commodity and fund the transaction through the trade cycle stages of pre-export payment, goods in transit, call-off from the warehouse, and delivery to end-buyers

AML & SANCTIONS IN TRADE FINANCE

BILL OF LADING: suspicious aspects

Identification of suspicious features and red flags in a bill of lading

GLOBAL CASH MANAGEMENT: compliance risk & red flags

Johnny Cash Converters
Use of a global cash concentration facility to mask the laundering of illicit monies.
Identification of red flags and how compliance risk can be reduced

CORRESPONDENT BANKING: due diligence & risk assessment

Required due diligence on a respondent bank. Appreciation of compliance risk exposure in correspondent banking

CORRESPONDENT BANKING: nostro & vostro accounts

Identification of nostro and vostro accounts in a payment scenario

IMPORT LETTER OF CREDIT: red flags

Foreigner
Identification of unusual features in an import letter of credit request and the red flag suspicious activity characteristics

EXPORT LETTER OF CREDIT: red flags

Christopher Cross
Evaluation of a potential money laundering cross border export letter of credit transaction. Identification of compliance risk issues and further information required to make a risk-based assessment

TRADE-BASED MONEY LAUNDERING: use of a letter of credit

Erasure
Consideration of a request to issue a letter of credit which is not in the ordinary course of business of the applicant. Assessment of the nature of the underlying transaction and identification of red flags

TRANSFERABLE LETTER OF CREDIT: compliance risk

Bad Company
Assessment of a transferable letter of credit request and identification of unusual features, potential compliance risk, and further information required to make a risk-based assessment. Consideration as to whether the transaction represents money laundering or sanctions violation

STANDBY LETTER OF CREDIT: compliance risk

Lindisfarne Launderers
Consideration on the course of action resulting from a suspicious claim shortly after issuance of a standby credit. Structuring the standby credit terms to reduce money laundering risk

DEMAND GUARANTEE: compliance risk

Manhattan Transfer
Identification of unusual aspects and consideration of compliance risk following the receipt of a request to issue a transferable advance payment guarantee on behalf of a respondent bank. Request for further information in order to make a risk-based assessment

RECEIVABLES FINANCE: compliance due diligence

Identification of the key areas for due diligence on invoice debt purchase

FORFAITING: due diligence on secondary debt purchase

Key areas of consideration for the secondary purchase of an avalised bill of exchange.
Identification of the risk features and further information required to assess the proposition

FINANCING THE TRADE CYCLE: validation of the transaction

Formulation of a pre-shipment payables solution to validate and take control of the goods and control the release of payment to the supplier. Identification of the suspicious nature of the transaction

COMMODITY FINANCE: identification of compliance risk

Wizzard Traders
Construction of the trade cycle timeline covering pre-export payment, goods in transit, warehouse call-off, and delivery to the end-buyers. Formulation of a structured trade finance solution for the release of monies, to validate and control the movement of goods throughout the trade cycle, and capture the trade receivable proceeds. Identification of any suspicious aspects of the transaction