Financing and Security Devices
Learning objectives
By the end of this online course you will be able to:
List the payment preferences for both exporters and importers
Describe the method of operation and the sequence of events for each payment option.
Understand the role of the parties and terminology involved with DCs.
Describe the procedure for factoring and forfaiting, including the documents required.
Describe the procedure for using the various instruments in the event of a default.
Identify the risk-management and finance aspects of payment alternatives.
Describe the differences between documentary credits (DC) and other trade finance solutions.
Describe the sequence of steps involved in the standard DC procedure.
List the benefits and risks of using bank guarantees, bonds, and standby letters of credit (SBLC).
List the rules and international conventions governing these solutions.
Course curriculum
Lessons
In this lesson, we will cover what payment options are available to exporters and importers and why they each prefer different payment options. We will explore these various options as well as the rules and procedures associated with each.
In this lesson, we will discuss the Documentary Credit (DC) also known as a “Letters of Credit”, a classic instrument of trade widely considered one of the most secure instruments available to international traders.
In today’s competitive global markets, exporters are increasingly forced to grant open account terms and many may encounter large amounts of money is tied up in accounts receivable (outstanding invoices) – this is the classic ‘cash flow’ predicament. Factoring and forfaiting are two methods of financing that exporters should consider.
In this lesson, we will learn about leveraging the safety of security devices known as guarantees, bonds, or standby letters of credit – which function like cash deposits that are forfeited in the event of a breach.
In this section, we will take a look at three sample case studies that showcase how simple solutions can remedy problems often seen in this sector.
FAQs
Answers to your most commonly asked questions.
This course forms part of the curriculum for the Export/Import Certificate (EIC) but can also be purchased on its own.
If you just complete this course then you will earn a Letter of Completion once you finish (please note there is no exam for this individual course).
However, this course can also be put towards achieving the EIC qualification. More details can be found here.
If you complete the EIC then you will earn a Certificate of Achievement, signed by the ICC Secretary General, once you pass the final exam.
A strong interest in international trade is recommended and all candidates need to be able to read and write in English.
Your purchase includes 12 months to access all 5 lessons. You can access the lessons as many times as you like within the 12-month access period.
This course is accredited by the London Institute of Banking and Finance (LIBF), the Institute of Banking and Finance Singapore (IBF), The Bankers Association for Finance and Trade (BAFT) and the Global Trade Professionals Alliance (GTPA).
Due to the immediate availability of our course content upon registration, ICC Academy has a strict no-refund policy for our courses and certifications. For more details, please refer to our Terms and Conditions.
This online course will take approximately 3-4 hours to complete depending on your level of experience.
Candidates will have 12 months to complete the 5 lessons.
- One-year access to the online course and all 5 lessons
- 3 case studies and 50 assessment questions – we’ll show you how to apply what you learn to real-world scenarios
- 33 animated explainer videos and 1 video lecture
- A printable glossary containing all the key terms for you to refer to throughout the course
- A downloadable study reference guide
- Dedicated, full-time IT support
Yes, all our courses are taken online. This means they are accessible at any time, from anywhere in the world. Learn when and where you want.
This course has been designed for export and import managers, trade finance bankers, freight forwarders and carriers, customs brokers, private and government inspectors and auditors, insurance providers, trade lawyers and trade promotion executives.
