Available Seminars

These Seminars are available as webinars or on-site training and may be combined and tailored into full- and multiple-day training programs

(Some examples are listed at the bottom of this page)

Contact us for more information and pricing

 

Export Letters of Credit (View Outline)


Letters of credit used in export sales (commercial L/Cs) are quite different from those credit managers are accustomed to using in domestic sales (standby L/Cs).  The biggest difference is that export L/Cs are intended to be drawn on and thereby serve as the means of payment for goods shipped.  The "rub" is that they tend to call for more documents, many of which are prepared by third parties.  Export L/Cs are designed to serve as a reliable means of credit assurance and also an efficient means of payment.  Yet 75% of the time the documents are noncompliant and it can take 3 to 6 weeks to get paid on a "sight" L/C.  This session provides participants with a detailed review of the mechanics of export L/Cs and how they are structured to assure fast payment.  The discussion then focuses on the points at which the process tends to break down.  Participants learn how to get paid in one or two days, even when documents are discrepant, how to avoid discrepancies (and non-payment), and how and when to use "silent confirmations."

Objective #1: Review the two fundamental principles of letters of credit

Objective #2: Understand how banks determine whether or not to pay their letters of credit

Objective #3: Recognize the risks that letters of credit protect against and those that remain

Objective #4: Explore methods for obtaining letters of credit with desired terms and conditions

Objective #5: Learn ways to use letters of credit to provide customers with low-cost financing while collecting payment immediately and cutting DSO to zero


Credit Risks and Tools for Credit Risk Mitigation (View Outline)


Review the categories of credit risk incurred when selling to customers inside the U.S. and the additional risks involved when selling overseas and then learn how various tools are designed to manage these risks.  This session compares commercial and standby letters of credit, standard and silent letter of credit confirmations, bank and corporate guarantees, forfaiting, factoring, credit insurance, credit derivatives, and foreign exchange contracts from the perspective of what risks each one covers.  Participants learn to identify risks and the appropriate tools for managing those risks.

Objective #1: Identify payment risks in international commercial transactions

Objective #2: Understand the risks that are and are not covered by various risk mitigation techniques

Objective #3: Match risk mitigation techniques with risks inherent to transactions exporters face

Objective #4: Craft an international credit policy suitable to a company's risk appetite and competitive position



Alternatives for Financing the Sale of Goods (View Outline)


Learn how to better negotiate and structure commercial sales into foreign markets in order to simultaneously increase sales, limit risks, and improve cash flow.  Examine tools that enable otherwise intolerable transactions by limiting payment and performance risks and tapping funding sources that are specifically designed for export sales.  This session explains the motives of the seller, the foreign buyer, and the seller's bank and then compares structures in order that attendees can craft an appropriate structure for each transaction they encounter.

Objective #1: Differentiate among various trade-facilitating and credit-enhancing tools (e.g. commercial & standby letters of credit, factoring, forfaiting, credit insurance)

Objective #2: Understand how Treasury/Credit can be an integral partner and resource to Sales and Marketing

Objective #3: Minimize payment risks in emerging and developing markets

Objective #4: Use tools that simultaneously provide foreign customers with more competitive payment terms while improving cash flow to the company and reducing risks



Techniques for Slashing DSO (Days Sales Outstanding)


Much ado is made of cash management and collection techniques for trimming a few days off of company DSO.  In many companies, it is important enough that bonuses are based on shortening DSO.  In this session, participants will learn about trade finance techniques for negotiating and structuring company sales in that allow a company to simultaneously increase sales, limit risks, improve cash flow, and slash DSO, potentially to zero.  Counterintuitively, the trick involves offering customers longer payment terms.  In exchange, the customers are required to employ structures that enable sale of the receivables to a financial institution without recourse (off-balance-sheet).  In most cases, the benefits to the customers are great enough that they can be expected to pay the financing costs.  Examine tools that enable otherwise unattractive transactions by limiting payment risks and tapping into programs that are specifically designed to cut DSO through off-balance-sheet financing.  This session explains the motives of the seller, the buyer, and financial institutions and then compares structures in order that attendees can craft appropriate programs for themselves and their customers.

Objective #1:Differentiate among various trade-facilitating and credit-enhancing tools (e.g., supply-chain finance, letters of credit, forfaiting, securitizations, credit insurance)

Objective #2:Learn how Treasury, Sales, and Credit can work in unison to increase balance sheet strength, improve competitiveness, and reduce risk

Objective #3:Develop methods for generating new revenues from customers in foreign markets without taking undue risks

Objective #4:Understand what motivates customers to engage in supply-chain finance programs and how to negotiate for mutual benefits

Objective #5:Identify opportunities for arbitraging interest rates



How Letters of Credit Work (...and Why They Sometimes Don't)


This session walks participants through the steps in the life of a letter of credit, identifying pitfalls along the way.  The fundamental principles are reviewed and illustrated using real-life examples.  Presenter explains how these principles apply to both commercial and standby letters of credit and how these 2 types differ.  In particular, participants learn why letters of credit might not get paid.  Along the way, participants learn about standard and silent confirmation and how to get paid in hours instead of weeks.

Objective #1: Understand how banks determine whether or not to pay their letters of credit

Objective #2: Avoid discrepancies in letter of credit documents

Objective #3: Understand the circumstances under which bankruptcy of a customer can prevent payment of their letters of credit as preferential payment

Objective #4: Gain proficiency to negotiate for wording that provides both solid protection and quick payment



Effective and Innovative Uses for Credit Insurance


Get a handle on how to use credit insurance by analyzing real-life case studies.  This session explores recent innovations in types of coverage available, including "key-account" and single-buyer insurance, differences between "named-buyer" ("European-style") and "excess-of-loss" ("American-style") policies, and the relative merits of policies with cancelable limits and those with non-cancelable limits.  In particular, the presenter reviews situations where credit insurance was used by companies with four varied objectives: risk containment, improved credit decisioning, sales expansion, and increased financing.

Objective #1: Understand what risks credit insurance does and does not protect against

Objective #2: Learn how insurers are increasing the flexibility of the protection they offer and the risks they cover

Objective #3: Review the variables in a credit insurance policy and how to request a policy tailored for your objectives

Objective #4: Study structures that employ credit insurance to maximize financing and improve the corporate balance sheet

Objective #5:Compare credit insurance with other risk mitigation techniques in order to understand situations where other alternatives are more appropriate



Choosing Payment Terms

Nations, companies, and individuals have engaged in trade for centuries and, from the beginning, have searched for the best financing alternative.  Today, a seller has several basic alternatives for obtaining payment for goods shipped to a buyer.  Each alternative addresses certain risks and cash flow desires for the buyer and the seller.  This class will provide participants with essential understanding, from the perspectives of both the seller and the buyer, of the applications, advantages, disadvantages, and risks involved of each alternative, from cash-in-advance to installment payments.  For those who routinely, or just occasionally, export or import, payment terms used in international transactions will be explored, including when and how these creative methods can also be used in domestic transactions.

Objective #1:Recognize payment and purchasing risks in commercial transactions

Objective #2:Explore the range of payment terms that are used in domestic and international trade

Objective #3:Understand the risks that are and are not covered by various payment terms

Objective #4:Craft a credit policy suitable to a company's risk appetite and competitive position



Managing Foreign Exchange Risks


Any company importing or exporting goods or owning foreign subsidiaries is exposed to foreign exchange risk.  Indeed, even if a company incurs all of its costs and generates all of its revenues in a single country, it could have significant economic exposure to changing foreign exchange rates.  Designed for entry-level professionals to senior-level executives, this session delivers vital, practical knowledge about Foreign Exchange (FX) risk management.  The session is designed to be of value to any company that exports or imports and even companies that do neither but must compete with companies that do.

Objective #1: Explore the types of risk that fluctuations in exchange rates pose for a company

Objective #2: Learn the differences between the two primary markets for foreign exchange hedges (banks and exchanges) and how to access each

Objective #3: Understand how and when to use the basic types of FX contracts: spot contracts, forward contracts, futures, swaps, and options

Objective #4: Review methodologies for developing “natural hedges” and for netting exposures in order to minimize costs



Regulatory Compliance Training for Trade Services Bankers: Complying with Foreign Assets Control, Anti-Boycott, and Anti-Money Laundering Regulations


This class orients bank employees on the U.S. foreign assets control, anti-boycott, and anti-money laundering regulations and what they must do in order to comply with those regulations.  The target audience is bank staff, including supervisors and managers, involved in handling letters of credit, documentary collections, and other trade transactions.  The scope includes the Office of Foreign Assets Control (OFAC) regulations, the Department of Commerce and the Department of the Treasury regulations regarding boycotts, and the USA PATRIOT Act regulations regarding money laundering.  In order to understand their purpose, participants learn about the origins and rationale for these regulations in addition to the requirements and penalties for noncompliance.  Participants are provided with “cheat sheets” to use in their daily jobs to identify and distinguish between transactions that are prohibited, transactions with know-your-customer requirements, transactions where assets must be frozen, and transactions that merely must be reported.  

Objective #1:Recognize the circumstances under which payment of a letter of credit or documentary collection must be blocked

Objective #2:Understand whether blocking a payment exposes the bank to lawsuits for nonpayment of letters of credit it issued or confirmed

Objective #3:Review the red flags of a “suspicious” transaction that may make it reportable as potential money laundering

Objective #4:Be able to identify who the customer is in a trade transaction: When is it the importer, the exporter, or the foreign bank?

Objective #5:Learn what makes a transaction “reportable” or “prohibited” under the antiboycott regulations

Objective #6:Understand what banks are required to do in order to verify compliance with export licensing requirements (ITAR and EAR)



The Impact on Exporters of Foreign Assets Control, Anti-Boycott, and Anti-Money Laundering Regulations


U.S. exporters are not only required to understand complex licensing requirements regarding the goods they sell, they must adhere to U.S. sanctions against “enemy” countries (foreign assets control regulations) and refuse to comply with sanctions imposed by other countries (anti-boycott regulations).  These two sets of regulations are partially policed by U.S. banks when handling shipping documents and payments and, if a violation is detected, payments must be frozen and the bank must report the exporter to the authorities.  Fines, loss of tax credits, and even jail terms may be imposed.  On top of all that, the USA PATRIOT Act requires banks to refuse to even handle transactions that may be completely legitimate but that involve parties on whom they haven’t done background checks and to report transactions viewed by the government as “suspicious,” with the idea of catching money launderers.  This session educates participants on the regulations governing the actions of banks when handling international payments and explores what banks are required to do and not to do, with a particular focus on the impact on the exporter and their payment for goods.

Objective #1: Understand the difference between international rules, domestic laws & regulations, and international conventions and when they apply

Objective #2: Learn under what circumstances payment from a foreign buyer could get frozen by the U.S. government and deemed “trading with the enemy”

Objective #3: Understand what makes a transaction reportable or prohibited under the anti-boycott regulations

Objective #4: Review how the USA PATRIOT Act applies to trade transactions and information banks actually need in order to satisfy “Know-Your-Customer” requirements

Objective #5:Learn what are banks required to do in order to verify compliance with export licensing requirements (ITAR and EAR)



The Impact of Basel III on Export Finance


New regulations are going to dramatically increase banking charges and exporters are going to be impacted more than most.

Coming on the heels of the banking crisis of 2008, Basel III is the latest attempt at creating a global set of regulations that assure the ability of banks to sustain credit losses in a financial downturn.  At a fundamental level, the regulations increase the amount of capital banks are required to maintain while also requiring banks to properly evaluate customer risk and allocate capital accordingly.  As a consequence, banks are pushed to charge more in general and to charge even more for high-risk transactions.

Unfortunately for exporters, the regulations do not adequately capture the low-risk nature of trade finance.  The larger the bank and the more internationally active, the greater the impact.  For a smaller bank, the proposed regulations may require almost 10 times as much capital to confirm a letter of credit, while, for the largest banks, the capital requirement may be a whopping 72 times as much.  The costs of export financing will also increase significantly.

In this session, the presenter explores the new regulations and explains the manner in which they are to be phased in and applied to banks of different sizes.  Participants learn what to expect in terms of increased costs and what to do in order to to minimize such costs.

Objective #1: Understand the intent of the Basel III Accord

Objective #2: Recognize how the U.S. version of Basel III differs from the version adopted  in other countries

Objective #3: Learn how capital requirements translate into bank fees and interest rates

Objective #4: Identify how Basel III applies to export finance

Objective #5: Explore ways to minimize the cost impact on exporters



Incoterms 2010


Incoterms are standard definitions for terms of shipment (like “FOB”) developed by the International Chamber of Commerce (ICC) for use in international sales contracts. Correct use of Incoterms goes a long way to providing the legal certainty upon which mutual confidence between business partners must be based. Over the years, the ICC has made many changes and added to the definitions of these shipping terms in contemporary commercial practice. To be sure of using them correctly, this class will assist participants to understand the areas that the 11 Incoterms cover and how each one works. This session will help participants to understand the matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold.

Objective #1: Understand what the Incoterms are and how they serve as an international standard.

Objective #2: Recognize problems that may arise from incorrect use of the Incoterms or by using archaic or domestic shipping terms instead of Incoterms in international contracts.

Objective #3: Learn the changes that were made when Incoterms 2010 was enacted.

Objective #4: Explore the risks and advantages of each Incoterm from the seller’s perspective and the buyer’s perspective.

Objective #5: Gain proficiency in writing contracts of sale and reviewing purchase orders by knowing how to define who will take the risk of damage, who will contract for carriage, and who will pay the costs of freight, insurance, customs duties, etc.

Objective #6: Develop insights regarding how and why to document when, in an export sale, title to goods transfers (and what happens if you don’t).



Rules & Regulations Governing International Trade


There are many rules and regulations governing international trade.  The rules are standards of practice, many created and maintained by the International Chamber of Commerce, to facilitate trade.  The regulations contain legal restrictions on what one is allowed to sell to whom and required (and prohibited) business conduct, with penalties for failure to comply including fines, loss of export privileges, and even jail terms.  In many cases, banks are required to police transactions they handle and report violations.  This session will provide an overview and introduction to rules and regulations governing international trade and take an in-depth look at some with broad applicability: the Incoterms 2010, the Uniform Customs and Practice for Documentary Credits (UCP), U.S. sanctions enforced by the Office of Foreign Assets Control (OFAC), Anti-Boycott regulations maintained by the U.S. Department of Commerce, and section 326 of the USA PATRIOT Act (“Know Your Customer”).  Exporters, importers, and their bankers must know the rules in order to play the game and avoid losses and penalties.

Objective #1:Understand the difference between international rules, domestic laws & regulations, and international conventions and when they apply

Objective #2:Eliminate common confusion over selected articles in the UCP600 and the International Standard Banking Practices

Objective #3:Review what the Incoterms 2010 cover, how they are intended to be used, how they are often misused, and what they have to do with transfer of title

Objective #4:Learn under what circumstances payment from a foreign buyer could get frozen by the U.S. government and deemed “trading with the enemy”

Objective #5:Understand makes a transaction “reportable” under the anti-boycott regulations

Objective #6:Review how the USA PATRIOT Act applies to trade transactions and information banks actually need in order to satisfy “Know-Your-Customer” requirements



Standby Letters of Credit (for Credit Managers)


Many people think of standby letters of credit as nearly equivalent to cash. What they don’t realize is that many letters of credit don’t get paid when called upon. Most often this is due to misunderstanding how standbys work and then failing to present the documents correctly; indeed, occasionally it is not even possible to present the documents that are called for. Sometimes it is because the bank that issued the standby is ordered not to pay by a court either because the customer has gone bankrupt and payment is deemed a preference (exactly what you thought the standby was protecting you against) or because the customer claims you have no right to the payment and has managed to get an injunction. And sometimes it is because the bank that issued the standby has been declared insolvent and the regulators (e.g., the FDIC) have repudiated the standby. This session takes an in-depth look at how standby letters of credit work and the reasons they sometimes don’t. Details explored will include confirmation of letters of credit, practices around international letters of credit, differences between letters of credit and guarantees, how and when competing laws and rules for letters of credit apply, and much more.  First and foremost, participants will learn how to protect themselves against non-payment.

Objective #1:Understand the fundamental principles upon which letter of credit law and practice are based

Objective #2:Review the mechanics of how letters of credit work

Objective #3:Learn how banks determine whether or not to pay their letters of credit

Objective #4:Understand the circumstances under which bankruptcy of a customer can prevent payment of their letters of credit as preferential payment

Objective #5:Explore what value is added by having a letter of credit confirmed and when it might be worthwhile

Objective #6:Review recommended language for letters of credit and understand the risks of using poor wording

Objective #7:Learn what laws and rules apply to commercial letters of credit, standby letters of credit, and bank guarantees and how they differ


Standby Letters of Credit (for Bankers)


Banks that issue standby letters of credit expose themselves to more than credit risks.  It is absolutely necessary for letter of credit issuers to understand the rules and laws governing their obligations and to structure their letters of credit and the reimbursement agreements backing them properly.  Failure to do so can result in a bank being obligated to pay and yet having no right to be reimbursed for such payment.  This session reviews the laws and rules governing standbys, including a comparison of the UCP and the ISP, and then takes a look at situations gone bad.  Participants learn how to protect their banks from making bad decisions and how to stay out of court.



Managing the Standby Letter of Credit Process (for Bankers)


Banks that issue standby letters of credit expose themselves to more than credit risks.  It is absolutely necessary for letter of credit issuers to understand the rules and laws governing their obligations and to word their letters of credit and structure the reimbursement agreements backing them properly. Failure to do so can result in a bank being obligated to pay and yet having no right to be reimbursed for such payment.  This session covers the principles underlying standby letters of credit, reviews the purposes for which standbys are used by bank customers, discusses recommended wording for letters of credit and the legal agreements backing them, and explores the regulatory capital requirements and other accounting issues. Participants learn how to protect their banks from making bad decisions and how to stay out of court and in the good graces of the regulators.

Objective #1:Explore the range of uses for standby letters of credit

Objective #2:Review recommended language for letters of credit and understand the risks of using poor wording

Objective #3:Learn what laws, rules, and banking regulations apply to letters of credit, including accounting, reporting, and regulatory capital requirements

Objective #4:Understand the liabilities and things that can go wrong in letter of credit transactions



The Laws and Rules and Regulations Governing Standby Letters of Credit (for Bankers)


This session includes a detailed review of the laws and rules governing standby letters of credit, including a comparison of the UCP and the ISP.  The target audience is bank staff who actually issue standby letters of credit.  Recommended wording will be explored and lessons learned will be reinforced using case studies. Participants learn how to write well-worded letters of credit that protect their banks, and their customers, from disputes and lawsuits.

Objective #1:Develop an understanding of the law governing letters of credit in the US and how it supplements and reinforces whatever rules might also apply to a standby letter of credit

Objective #2:Learn about what the UCP600, the ISP98, and the URDG are each designed to do and when it is appropriate to use which as the governing rules for a standby letter of credit

Objective #3:Explore the consequences of using imprecise wording or including nondocumentary conditions in a standby letter of credit

Objective #4:Understand the legal liabilities and rights of banks that issue, advise, confirm, and pay standby letters of credit



Using the ISP98 Model Forms for Standby Letters of Credit


Letters of credit are commonly used in business transactions to ensure payment and performance by the parties.  Over $600 billion of standby letters of credit are currently outstanding in the U.S. marketplace.  The transactions they support can be complex, leading to concern that the letters of credit be properly worded.  The majority of these letters of credit are subject, by their terms, to the International Standby Practices (“ISP98”), a body of rules and practices designed for making standby letters of credit dependable instruments for the purposes they serve.  Yet, this is an area that is poorly understood by the companies using these instruments and the lawyers who represent them, leading to the use of unnecessarily complicated and sometimes unworkable language rather than relying on ISP98 provisions. 

In June 2013, the Institute for International Banking Law and Practice, the group that created the ISP98, released a set of eight model forms for use in drafting letters of credit that are subject to the ISP98.  The model forms, together with annexes and endnotes explaining their use, elegantly demonstrate how various, common situations can be dealt with. 

This session acquaints participants with the ISP98 Model Forms and thereby prepare them to structure letters of credit that comply with the provisions of the ISP98.  The program focuses on how and when to use the model forms to accomplish such objectives as automatic extensions, automatic reductions, transfer of drawing rights, confirmation, and arranging local guarantees.

Objective #1: Understand the bare essential requirements for a well-written letter of credit

Objective #2: Explore repercussions of poor language

Objective #3: Develop templates and boilerplates for use in common situations

Objective #4: Learn about variations in the ISP98 Model Forms to adapt them to complex situations



Supply-Chain Finance


It seems the latest and greatest technique for creating business efficiencies is “supply-chain management.”  An important component of this is supply-chain finance.  So what, exactly, is “supply-chain finance”?  Although the term has been applied in a wide range of contexts, it has particular application to structures in which a bank provides financing to the suppliers of a bank customer.  While the concept has roots in letters of credit and forfaiting, it is a new approach and is still mutating.  Variations are known as “reverse factoring” and “approved invoice financing” and may involve “purchase order-invoice matching applications” and “bank payment obligations.”  Importers are desirous of such solutions to the problem of making sure one’s suppliers are able to obtain dependable, low-cost financing.  Banks are struggling with the risks and costs of developing new products and exporters are finding themselves faced with offers they must not refuse to join their customers’ supply-chain finance programs.  This session examines the origins of supply-chain finance, the current state, and the projected future and its impact on importers, exporters, and banks.

Objective #1: Explore the history and drivers of supply-chain finance

Objective #2: Compare the mechanics of various supply-chain finance programs with each other

Objective #3: Compare the risks and costs of supply-chain finance with letters of credit

Objective #4: Understand the accounting issues faced by importers and exporters when arranging receivables purchases

Objective #5: Review supply-chain finance programs being offered by Exim Bank and the World Bank



Selling Trade Finance Products (for Bankers)


This class is a three-day crash course designed for bank employees involved in selling trade services and trade finance products.  Participants learn about customer motivations behind obtaining risk mitigation, financing, and information from banks and how banks provide solutions that address these needs.  Products explained include import and export letters of credit, standby letters of credit, bank guarantees, bankers’ acceptances, trade acceptances, documentary draft collections, credit insurance, ECA guarantees, forfaiting, cross-border factoring, loans against export receivables, purchase of trade receivables, securitization of trade receivables, and supply-chain finance.  The discussion includes the rules and regulations underpinning and regulating trade finance, including the UCP, the ISP, the URDG, the URC, the UCC (articles 3, 4, 5, and 9), the Bills of Exchange Act (UK), the Geneva Convention on Bills of Exchange, the Incoterms, anti-boycott regulations, OFAC and UN sanctions, and anti-money laundering regulations (the USA PATRIOT Act).  Participants also learn about tools used by banks to mitigate their own risks, like risk participations, working capital loan guarantees, credit insurance for banks, and reimbursement undertakings.  The objective is to equip bankers with the knowledge to understand exporters’ and importers’ objectives, identify customer needs, qualify opportunities, and design workable and profitable solutions while managing the attendant risks.



Full-Day Programs

* Export Risks and Tools for Credit Risk Mitigation (click here for outline)

* Export Letters of Credit (click here for outline)

* Alternatives for Financing Export Sales (click here for outline)


Two-Day Program

Day 1: Export Risks and Tools for Credit Risk Mitigation

Day 2: Export Letters of Credit


Three-Day Program

Day 1: Export Risks and Tools for Credit Risk Mitigation

Day 2: Export Letters of Credit

Day 3: Alternatives for Financing Export Sales


Five-Day Program (click here for full five-day outline)

Day 1: Export Risks and Tools for Credit Risk Mitigation

Day 2: Export Letters of Credit

Day 3, Part 1: Effective and Innovative Uses for Credit Insurance

Day 3, Part 2: Managing Foreign Exchange Risks

Day 4, Part 1: Standby Letters of Credit and Bank Guarantees

Day 4, Part 2: Alternatives for Financing Export Sales

Day 5, Part 1: Rules & Regulations Pertaining to Export Finance

Day 5, Part 2: Supply-Chain Finance and the Path to Electronic Documents