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Training Services


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Documentary Letters of Credit + Methods of Payment

Time: 09:00 - 16:00

Date: 16/04/2020

Venue: Greater Birmingham Chambers of Commerce

Division: International Business Hub

General Price

Member Price: £305.00

Future Faces Members: £305.00

Non-Member Price: £335.00

All prices exclude VAT

Event Description:

Our international services provide a one-stop-shop for all importers and exporters, from established businesses to those who are considering trading internationally for the first time. As well as being able to tap into the expertise of international trade and business advisers, businesses can seek assistance with export and import documentation, market information and contacts, language and translation services and foreign currency exchange.

What is a Documentary Letters of Credit?

A Documentary Letter of Credit (L/C) is a method of payment used to facilitate international trade and is considered to be the most secure method of receiving payment for exports other than advance payments

A L/C is a written undertaking given by a bank on behalf of an importer (buyer) to pay an exporter (seller) a given sum of money within a specified time period, providing the exporter presents documents to the bank which comply with the terms and conditions stipulated in the L/C

This course is perfect if you want to understand the importance of the Letter of Credit procedure and the different types available, enabling businesses to comply with the requirements.

Methods of Payment

Methods of payment is an international trade course to help importers and exporters succeed in the global marketplace and win sales against overseas competition. Get paid in full and on time for each export sale by knowing and using the appropriate payment method to minimize payment risk while meeting the needs of your customers.

By learning the appropriate payment methods, delegates will also be enabled to offer clients more attractive sales terms supported by the appropriate payment method.

This half day course will help you to identify different methods of payment in international trade, understand the necessary documentation, and comply with the requirements of each method of payment for international trade to process smooth and trouble free international trade transactions every time!

Course Overview

  • Identify the different methods of payment used in international trade.
  • Four main methods of payment available to exporters and importers
    • Payment in advance: money upfront, payment assured
    • Open account: trust, convenience, simple to operate
    • Documentary Collections: payment through bank, supporting transport documents needed for payment.
    • Letters of Credit: payment assured through banks on presentation of documents specified in L/C terms and full compliance with terms.
  • Advantages and disadvantages of the four different methods of payment for an exporter.
    • Payment in advance
    • Open account
    • Documentary Collections
    • Letters of Credit
  • Dealing with the uncertainty of foreign currency transactions. (2 & 2)
    • Spot rates – accept payment (or make payment if importing) in currency using the rate quoted by the bank on the day of payment
    • Forward contracts – to mitigate uncertainty and know how much sterling you will receive (or pay out if importing) pre-book the rate in advance with your bank of currency provider.
    • Currency accounts – hold funds in a currency- useful if you receive and make a lot of payments in the same currency. Also, you can hold funds in the currency until the rate becomes more favourable.
    • Currency options – pre-book your ideal or ‘strike’ rate with your bank for a premium/fee. On the day of payment, you can use the rate pre-booked or choose to use the prevailing rate on the day if it is better for you.
  •  Identify and understand the necessary documentation for each method of payment.
    • Shipping documents for payment in advance terms
    • Required documents to the buyer in an open account transaction.
    • Requested shipping documents under a letter of credit transaction
    • Ascertain what documents their customer requires
    • Additional documents that may be required to support the invoice, packing list and transport documents: Insurance certificate, Pre-shipment inspection certificate, Packing list, Draft, Certificate of conformity, Certificate of origin, Certificate of quality
  • Be able to comply with the requirements of different methods of payment#
  • Arrange the four methods of payment in order staring with the most secure method for the exporter to the least secure.

Who should attend?

This course is suitable for staff needing a clear understanding of the procedures required for goods bought on documentary credit terms. Knowledge and understanding is reinforced through the use of exercises and detailed checklists. Essential learning for accounts, and purchasing teams. Also anyone in the following departments

  • Accounts
  • Export Administration
  • Shipping
  • Export Sales Administration
  • Logistics
  • Despatch
  • Purchasing
  • Documentation Personnel

For further information please contact: training@birmingham-chamber.com

Address:
Greater Birmingham Chambers of Commerce
75 Harborne Road
Edgbaston
Birmingham
B15 3DH


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