Payment Methods: Handling Letters of Credit

This essential training course is designed for all exporters and importers who work with Letters of Credit (LC). Through practical exercises, participants will learn to handle this payment method effectively while reviewing alternative payment terms. The course focuses on managing bank requirements and preparing accurate documentation on time, helping businesses avoid costly delays and errors.

Description

This practical workshop is a must for companies that trade internationally and handle Letters of Credit. It provides comprehensive guidance on applying for, interpreting and accepting LCs and offers invaluable support in establishing procedures that ensure payment success "first-time, every time." Updated to cover the latest rules, including UCP600, this course also reviews other methods of payment to provide a well-rounded understanding of global trade finance.

A Letter of Credit is often used in scenarios where there is limited trust between buyer and seller, especially in first-time international transactions or when trading in high-risk markets. For instance, if a UK-based manufacturer is exporting machinery to a buyer in a new market such as the Middle East, an LC guarantees that the payment will be made by the buyer’s bank once the correct documentation is presented, reducing risk for both parties.

The course is not just for finance professionals—it’s designed for sales, contracts, logistics, and customer service teams, empowering them to navigate the complexities of Letters of Credit with confidence. Attendees will benefit from working examples that will help them streamline payment processes, avoid errors, and ensure smooth transactions when dealing with banks and international clients.

Whether participants are new to the field or experienced professionals looking to refine their skills, this course will provide the necessary knowledge and practical tools for effective and efficient international trade transactions.

Course Structure and Key Topics

The course runs from 10:00 AM to 3:30 PM, including regular breaks and a lunch break.  

This course is designed to be highly interactive, with quizzes, activities, and Q&A sessions. We encourage delegates to actively engage with the course tutor throughout the day, fostering a dynamic learning environment where everyone's input is valued. This interactive approach ensures that you not only understand the course material but also learn how to apply it in real-world scenarios.   

  • The nature of risk in international trade and payments 

  • “Know Your Customer” - how to evaluate and minimise risk 

  • Introduction to Payment Methods and Bills of Exchange 

  • Overview of Letters of Credit: Purpose, Format, Types, and Key Definitions 

  • UCP 600 Rules and ISBP Guidelines 

  • Issuing Procedures, Compliance, and Beneficiary Requirements 

  • L/C Checklist: Handling Rejections, Amendments, and Common Errors 

  • Role of Freight Forwarders and Presentation Procedures 

  • Settlement Procedures: Timing of Payments 

  • Workshops: Reading LCs, Completing Checklists, and Avoiding Errors. 

Who Should Consider this Course?

This course is aimed at international trade and finance professionals, particularly those working with Letters of Credit and other payment methods. It is ideal for exporters, importers, and trade finance specialists seeking to deepen their understanding of documentary credits and enhance their ability to navigate complex financial transactions. Additionally, it is beneficial for sales, logistics, contracts teams, and customer service representatives, who need to comprehend the implications of payment methods on their operations.  

Testimonials

"Tim was thorough and willing to accept questions and assist wherever possible." 18/07.2024

"Tim spoke clearly and concisely, explaining each part of the content very well and in relatable terms" 20/05/2024

"Tim H was an excellent tutor, he made it very easy to understand and was happy to go over any tricky points " 02/02/2024

"Well set up and presented , very good examples of scenarios" Joanna Worsdorfer 24/11/2020

"Being fairly new to processing LC within Sales admin team, just explanation of what each point within LC means and how we need to address those was very educational."  Katerina Gill 28/07/2020

 

 

Why the Strong & Herd Course is Unique

What distinguishes Strong & Herd training courses is our commitment to empowering participants to apply their knowledge in real-world scenarios, enabling them to take a proactive approach in their job roles. Our courses are led by industry experts with extensive practical experience in international trade, ensuring participants gain valuable insights and expertise. 

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