Course contents

Trade Finance Advisor is divided into three modules - principles, documents,
methods and products.

There are extensive self-assessment activities. At the end of module 3,
there is a "cross-product" self-assessment exercise, in which students
are required to identify the most appropriate trade finance techniques
for a number of trading scenarios.

Module 1: Principles

Risks in international trade - buyer risk, supplier performance risk, country risk, forex risk etc. How banks can mitigate these risks for importers and exporters.

Working capital - what it is, why working capital is an issue for international traders. Calculation of working capital needs.

The nature of trade finance - how it differs from general commercial lending. Principles governing the provision of trade finance facilities. Recourse as an issue for lenders.

Module 2: Documents

Bills of exchange & promissory notes. Financial documents in practice - avalisation, negotiation and discounting, advances against bills. Acceptance credits.

Bills of lading and other transport documents. Release notes, warehouse warrants, trust receipts, shipping guarantees.

Module 3: Methods and products

Letters of credit, collections, export credit insurance, factoring, invoice discounting, goods as collateral, forfaiting, bonds and guarantees.

These are analysed using a 'matrix' approach, whose elements include: parties, process, risk issues, finance opportunities.