Comprehensive course analysis
Who should attend
This Masterclass is designed for participants of all levels from entry up to mid-management, and due to the broad nature of the course and the trainer’s experience will also be relevant for those in more senior roles looking to expand their product knowledge:
- Those with 0-3yrs experience in Sales and/or Product Management in Trade
- Corporate Relationship Officers/Managers/Directors
- Credit officers/Managers
- Compliance officers/Managers
- • Risk officers/Managers
About the course
The Masterclass in Trade Finance Solutions de-mystifies the Trade Finance market to give you a better understanding the role that Trade plays in helping clients do more business using traditional products. We will explain in a simple and logical manner the core documentary and open account Trade products, including their individual features and benefits.
In this highly practical programme, you will learn how to identify intrinsic risks in potential transactions and explain how these might be mitigated using tools and practices supported by example market transactions and exercises. You will also become familiar with the sometimes-complex language and terminology surrounding Trade.
After completing the Masterclass, you will be better equipped to spot opportunities to write well-structured, lower risk Trade Finance business. As a result, you should develop a deeper understanding of your customer’s requirements and elevate your position to that of trusted advisor.
The following example case studies and exercises will be employed through the programme to reinforce key learning points, although others may be substituted depending upon experience and requirements of the group:
- How to construct a Trade Cycle Analysis to determine understanding and Facility requirements
- Needle Pack International – simple import facility
- Trader Limited an International import/export company
- Understanding the appropriate Incoterm and why companies might have certain preferences
- Expansion Company - Guarantee request from a Global corporate
- Desk maker – simple CID facility
- Airplane parts – to determine the most appropriate open account product
- Hairy Haulier – complex open account facility
- Liverpool Football company, purchase facility
- Structured Trade and Commodity Finance structures
- Energy Petroleum Limited, Import structure plus potential Receivables opportunity
- Taipan Hong Kong Trading Company – multi faceted structure involving Tolling
- Tastee Products – case study with multiple solution and product sale opportunities designed to demonstrate practical application of the learning
The Masterclass Learning Experience
- Introductory videos from Simon Enticknap and fellow participants
- On-demand videos covering each module, pre-recorded by Simon Enticknap
- Weekly live virtual training sessions with Simon Enticknap
- Module slides available for download
- Curated content and resources
- Practical group and individual exercises during and outside of the live sessions
- Group discussions moderated by Simon Enticknap via our social learning platform
- Participant-generated content for peer-to-peer learning and networking
- Real-life interactive case studies
- Quizzes, polls, interactive flipcharts and collaboration tools
- Ongoing coaching and feedback from Simon Enticknap
- ‘Office Hours’ - Voluntary Q&A sessions with Simon Enticknap
WEEK ONE THE FUNDAMENTALS OF TRADE
Module 1 – The Fundamentals of Trade
By the end of this module, you will be able to confidently explain the basic drivers of trade and identify the key motivators and risks from an importer, exporter and financier’s perspective.
- Why do Countries/Companies Trade
- What are the barriers to trade?
- What are Exporters looking for?
- What are Importers looking for?
- Impact of International versus Domestic trade
WEEK TWO ANALYSING REQUIREMENTS AND AN INTRODUCTION TO DOCUMENTARY TRADE PRODUCTS
Module 2 – Trade Cycle Analysis and Basic Documentary Trade Products
By the end of this module, you will understand the main questions to ask and elements that need to be understood to be able to successfully draw up a Trade Cycle analysis and demonstrate an in depth understanding of a client’s true trade Finance requirements. We will start to introduce some of the Trade Finance products that form the building blocks in any banks Trade armoury
- Trade Cycle Analysis
- Documentary Collections
- Basic Letters of Credit
Module 3 – Documentation, Contracts, cross border settlements and additional risks to consider
By the end of this module, you will be able to outline the key documents seen in trade transactions, their role and relative value to buyers, sellers, and financiers. We will also consider the role that Country risk plays in influencing payments.
- Commercial contract vs Documents used in International Trade
- Fundamentals of cross border payments and correspondent relationships
- Country risks – things to consider
WEEK THREE INCOTERMS, INTERNATIONAL GUIDELINES AND MORE COMPLEX LETTERS OF CREDIT
Module 4 – International Commercial Terms
By the end of this topic, you will be able to confidently explain the role of Incoterms, identify differences between them and describe the most appropriate term depending upon the circumstances.
- International commercial terms (Incoterms)
Module 5 – Hybrid Letters of Credit
By the end of this module, you will have a deeper understanding of the various types of Letters of Credit that have been developed. We will examine how the basic Letter of Credit structure has been expanded to address more unusual circumstances, or to help obfuscate risks that might not otherwise be covered.
- Red Clause
- Green Clause
- Deferred Payment
- Standby – also covered under Guarantees
- Re-finance agreements
- Back to Back Letters of Credit
- Synthetic Letters of Credit
Module 6 – Silent Confirmations
By the end of this module, you will understand how and why this product was developed, the risks involved, and what can be done to minimise those risks.
- Negotiation without recourse
- Commitment to negotiate
Module 7 – Rules and Regulations
By the end of this module, you will understand the key external influences that can impact a client’s ability to do business. We will review the main documents that are generally available to all parties that, whilst not legally binding, nevertheless help set precedent and provide strong guidance to practitioners in the international stage.
- Sanctions and boycotts
- Anti-boycott regulations
- Anti-Money Laundering & Combating Financing of Terrorism regulations
- Export licensing
- Exchange Controls
- Overarching international documentary support structure
- The Uniform Rules for Collections (“URC522”)
- The Uniform Customs & Practice for Documentary Credits (“UCP”)
- International Standard Banking Practice for the Examination of Documents under Documentary Credits (“ISBP”)
- The International Standby Practices (“ISP98”)
- The Uniform Rules for Demand Guarantees (“URDG”)
WEEK FOUR GUARANTEES AND OPEN ACCOUNT TRADE Module 8 – Guarantees and Standby Letters of Credit
By the end of this module, you will be able to outline the key types of Guarantee that are seen in International business and identify the key parties and risks that each one is taking. You will also be able to advise on the appropriateness of each type and use this knowledge to consider an example request.
- Advance Payment
- Customs/Duty deferment
Module 9 – Bank Role in Guarantees and the associated liabilities
By the end of this module, you will better understand the role that Financial institutions play in the Guarantees market, the risks that they are taking and typical structures that they utilise to deliver the product.
- Typical Structure – facility requirements
- Extend or pay
- Foreign laws and usage
- Operative clauses
- Local re-issuance
- Counter Guarantees
Module 10 – Open Account trading
By far and away the largest amount of trade is undertaken on an “Open account” basis. In this module, we will explore the various ways that this is transacted and what products are available to financiers to enable them to consider participating and providing any related financing.
- Receivables Purchase
- Individual v whole book (CID)
- With/without recourse
- Insurance backed
- Inventory finance
- Trade loans v Overdrafts
- Supply chain Finance
- Why these are attractive
WEEK FIVE RISK SELL DOWN AND EXPOSURE MANAGEMENT – STRUCTURED TRADE AND MARKET DEVELOPMENTS
Module 11 – Sharing of Risk
By the end of this module, you will better understand the various was in which Financiers can consider transactions that might normally exceed their risk appetite. They will develop a broader knowledge of the distribution and participation markets that exist, both on a bilateral and syndicated basis.
- Participations, funded & unfunded
- Credit insurance for banks
- Multilateral guarantees
- Extra L/C confirming banks
- Reimbursement undertakings
- Export Credit Agencies and Government backed facilities
- IFC/World bank
Module 12 – Structured Trade and Commodity Finance
This module will look at the main structures traditionally employed in “Structured Trade” market. We will look at how the key risks are identified and potentially mitigated and then relate these structures back to specific examples of market transactions to help reinforce your understanding.
- Typical structures seen in the market
- Example transactions
- Applying the learning in a practical way
Module 13 – Future Product Development - Blockchain
In this penultimate module, we will spend some time looking at developments in the Trade Market with the introduction of new technology.
- What exactly is Blockchain?
- Where did it come from?
- What impact could it have?
- Why are banks and Corporates getting excited?
- Who are some of the key players?
- Some example transactions.
Module 14 – End of Masterclass Wrap-Up
Simon is a highly experienced trade finance practitioner with 40 years of expertise in Sales and Relationship Management focusing on key product areas including Trade Finance, Supply chain finance, Treasury, Payments and Custody. He has been appointed at heading positions at prestigious banking ...
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