Using Letters of Credits and Drafts

Course Description

A letter of credit is a binding agreement used to facilitate payment through a bank for international trade, a sale between the seller and the buyer.
Imagine not getting paid for your international sale through a letter of credit! Unfortunately, it happens.
Learn to comply with export and import Letter of Credit requirements to ensure prompt payment for your shipments or documentation needed for your import transaction. Learn why a bank could declare a document discrepant when a number has been rounded up (or down)!

Learn the basic terminology and significance of various documents, and learn how to prevent and handle discrepancies. Everyone involved in the international sale or purchase will benefit from this Letter of Credit course. This Letter of Credit course will help ensure exporters receive payment for their shipments, get paid faster and reduce bank fees. Importers will learn about their suppliers’ documentary requirements. Plus, discuss:

o Selecting the most appropriate payment method for your company, and
o Compare costs and risks of various Letter of Credit options

Included in every registration is a detailed reference book with export and import letter of credit
examples, checklists, documentation samples, and rules. The rules are used by banks to decide whether or not to pay the seller based on the documentation submitted:

o Uniform Customs & Practice for Documentary Credits
o International Standby Practices (ISP98) for standby letters of credit!

Both importing and exporting involve risks. For exporters, buyers could fail to pay for your goods, while importers could pay for something they never receive.

Because of the distances involved, it may be difficult to resolve any disputes.
One way to reduce risk is to use a letter of credit. This instrument offers a guarantee to the seller that they will be paid while assuring the buyer that no payment will be made until they receive the goods.
This course will explain the different types of letters of credit, the roles of each party using them and how they are used.
It will also recommend other practical ways in which exporters can ensure they are paid on time, every time

Learning outcomes

 Payment options in international trade
 The role of letters of credit in international trade
 The benefits of letters of credit to a buyer and seller
 Roles and responsibilities of buyer and seller in a letter of credit
 The role of banks
 Making letters of credit work for all parties
 Avoiding discrepancies
 Common documentation and common terms
 Strict compliance – the role of UCP 600
 Generating finance and cash flow within a letter of credit
 The different types of credit

Who should attend

This course is most suitable for new exporters or people working in export but who have never had formal training on using letters of credit.
The departments within a business that this course would apply to are:
 Customer services
 Export administration
 Shipping
 Purchasing
 Accounts and finance
 Export sales administration
 Export sales management
 Import administration
 Logistics
 Distribution
 Legal

Delivery modes:
– Face-to-face, presenter-taught workshop
– Online workshop via the platform Zoom
This course has been designed to actively involve the learner throughout the day. It includes
 Interactive presentations
 Group work and discussion
 Structured strategy development activities
 Strategy based case studies

Certification

Program participants who successfully complete the course are issued a certificate of Completion from Global institute of Projects Management & Development – GIPMD