How to Handle Letters of Credit

Overview

Course duration: 1 day.

This course will enable participants to understand the mechanics of handling letters of credit in simple terms from the exporter’s point of view.

Fifty percent of documents presented under letters of credit are rejected by the banks because of discrepancies. Participants learn what they can do, in practical terms, to improve letters of credit performance, and ensure good management and collection mechanisms.

Is it right for me?

Suitable for anyone who wants to learn about letters of credit or who wants to improve their skills.

What will I learn?

By the end of this course you will be able to:

• Distinguish the benefits of the main forms (Irrevocable and Confirmed) and know when to use them.
• Use a formula to help buyers improve the content of letters of credit opened in their favour.
• Check incoming letters of credit, using a reliable checklist.
• Appreciate how bills of exchange work with letters of credit.
• Understand how UCP600 supports the exporter.

What will it cover?

Forms of Letters of Credit

• Learn the difference between Revocable, Irrevocable and Confirmed Irrevocable letters of credit
• How to choose the appropriate form 
• Identify the types of letter of credit  
• Learn when to use the different types

Understanding the Letters of Credit Process

• The parties involved
• The document flow 
• The costs involved 

Using Letters of Credit

• What are the advantages and disadvantages? 
• Understand the precise documentation demands
• Learn how to check an incoming letter of credit using a checklist
• How to help buyers improve the contents of letters of credit opened in the exporter's favour
• Presenting documents to the bank 
• Dealing with discrepancies
• Improving letters of credit performance

Bills of Exchange

• What are bills of exchange and who are the parties to them? 
• When and why would you use them?
• Negotiating bills of exchange
• Forfeiting procedures and avalised bills of exchange  
• Learn how bills of exchange work with letters of credit

UCP 600

• The Uniform Customs and Practice for Documentary Credits, publication 600 explained 
• The importance to the exporter
• The key points contained in UCP600 and how they support the exporter

Further courses to consider

Advanced Letters of Credit Workshop

Trainer Profile

Mark Hayward

During this highly informative one-day course I go through letters of credit in simple terms, making the process easy to understand and work with. I ensure that participants appreciate what makes a good letter of credit and the associated best practice approach to working with them.

Having worked in credit roles for many years and having advised many individuals and organisations, I know what works and the pitfalls to avoid. My participants feel confident going back into the workplace that they really know how to apply what they have learnt in practical terms.

The Faculty

Along with Phillip Brigstock Bates, Mark Hayward is part of the dedicated faculty team who will deliver this course.

View our trainers' profiles.

Testimonial

Dhiren Shah, Treasury Operations Assistant

Itochu Europe PLC

Provided an informative and clear understanding of the mechanics involved with letters of credit from which I have benefited immensely, the knowledge I gained is now a source of information for others.