International Trade Finance - An Overview

Easy Explanation of International Trade Payment Methods like LC, Collections, BG etc and Incoterms 2020

What you'll learn
Get an overview of trade finance and understand roles of various related parties
Understand the payment methods used in international trade and Pros and Cons of each payment method
Crystal clear concepts of process flow of complex methods like letter of credit, bank guarantee and collections
Get an overview of Incoterms 2020
Requirements
No prerequisites
Description
Are you confused about the different payment methods used in international trade finance? Confused about what is the need of so many types of payment methods - letter of credit, collections, bank guarantee? What is the difference between these and when is each method used? Want to know what are the most commonly used trade documents? How do those look like? Understand what is meant by Incoterms? What is its need? How is it used in international trade?Then you are in the right place!! Welcome to the course on International Trade Finance - An OverviewWhat will you get out of this course?Be confident to face interview questions for trade finance desk operationsBe confident with the complex flows of documents and money in letter of credit, collections etcCrystal clear concepts of terms/jargons used in relation to international trade finance Know how the commonly used trade documents look like and the important fieldsEvaluate your understanding with quiz and practice testWho is this course for?Business Analysts and Consultants of International Trade FinanceBusinessmen in the Export-Import domain who want to understand the payment methods available to themBankersStudents in International TradeEmployees in Trading OrganizationsWhy should you enroll to this course?The course gives an overview of the world of trade finance before going into the details of the various payment methods used in international trade. It explains the detailed process flow of complex payment methods like collections, letter of credit, escrow account, and bank guarantees.Special care has been taken to ensure that all the explanations are simple and lucid so that anyone without any background in finance can understand.Invest just two hours in this course and be assured that you will get a solid knowledge base and you will be more confident to go into in-depth understandings in international trade finance.What this course covers?What is Trade Finance and who are the Parties InvolvedMethods of Payment in International Trade - OverviewDocumentary Collection - Detailed Process Flow and Related KnowhowLetter of Credit - Detailed Process Flow and Related KnowhowTypes of Letter of CreditBank Guarantees - Detailed Process Flow and Related KnowhowLetter of Credit and Bank Guarantee - A ComparisonSamples of Real-life trade documents and the important fields in those documents.Overview of Incoterms 2020Quiz and Evaluation Test

Overview

Section 1: International Trade Finance - The Gist

Lecture 1 What is this course about?

Lecture 2 A Gist of the world of International Trade Finance

Lecture 3 Knowledge Bite - Understanding Risks in Trade Finance

Lecture 4 Knowledge Bite - Trade Based Money Laundering

Section 2: Methods of Payment in International Trade

Lecture 5 Classification of Payment Methods and Factors which determine the choice

Lecture 6 Advance Payment and Open Account Methods

Lecture 7 Escrow Account Method

Lecture 8 Documentary Collections and Avalisation/Banker's Acceptance Methods

Lecture 9 Deferred Payment Undertakings and Bank Guarantees

Section 3: Documentary Collections Method

Lecture 10 Roles/ Parties in Documentary Collections Method

Lecture 11 Process Flow of Documentary Collections - Sight and Usance

Lecture 12 Categories of Documents and Types of Collections

Lecture 13 What is a Collection Instruction prepared by banks?

Lecture 14 Responsibilities in the Export/Outward Collection Desk of a Bank

Lecture 15 Responsibilities in the Import/Inward Collection Desk of a Bank

Lecture 16 Import Bills under Collection - Job Set Up

Section 4: Letter of Credit

Lecture 17 Understanding the Definition of a Letter of Credit

Lecture 18 Process Flow And Roles of Banks Involved (Advising, Negotiating, Reimbursing)

Lecture 19 Vital Points about LCs

Lecture 20 Differences among Discounting, Purchase and Negotiation

Lecture 21 Quick Summary - Balance of Risk Between Buyer and Seller

Section 5: Types of Letters of Credit

Lecture 22 Classification of Letters of Credit

Lecture 23 Confirmed and Unconfirmed LC - The Difference

Lecture 24 Red Clause LC and Green Clause LC - Uses

Lecture 25 A Revolving Credit - Uses and Types

Lecture 26 Transferable LCs - Process Flow

Lecture 27 Back to Back LC - Process Flow

Section 6: Bank Guarantees

Lecture 28 Bank Guarantee - Definition and Process Flow

Lecture 29 Types of BGs - Depending on Nature and Purposes

Lecture 30 Advantages of a Bank Guarantee

Lecture 31 Validity of the BG Limit Vs Validity of an individual BG

Section 7: Letter of Credit and Bank Guarantee - A Comparison

Lecture 32 Letter of Credit Vs Bank Guarantee

Section 8: Samples of Real life trade documents and the important fields

Lecture 33 Invoices/Certificates/Transport Docs/Insurance

Section 9: Incoterms® - The Basis of International Trade

Lecture 34 Incoterms® 2020 Overview

Section 10: Case Studies - Test Yourself

Section 11: Evaluation

Business Analysts and Consultants of Trade Finance,Bankers,Businessmen in Export-Import Domain,Employees of Trading Organizations,CITF Aspirants and Students of International Trade