Trade Finance - Part 1

Trade Finance - Part 1


This eCourse consists of three modules. Module 1 provides an overview of international trade finance, including the main risks associated with cross-border trade, the various payment methods used by importers/exporters, the key commercial documents, and the role of banks in international trade.

Module 2 describes the basics of letters of credit and how they work. It also outlines their benefits and drawbacks as a trade finance instrument, and describes their risks from the point of view of importers, exporters, and participating banks.

Module 3 describes the various forms that letters of credit can take on as not every trade that involves a letter of credit is the same. It also outlines the key distinguishing features between the different types of letters of credit - over the years, a number of different types have been used to suit particular circumstances that traders face when transacting across borders.



On completion of this course, you will be able to:
- Describe how letters of credit can be distinguished on the basis of some of their basic features
- Outline some special or customized elements of some letters of credit
- Explain the purpose of a standby letter of credit
- Describe how letters of credit facilitate payment in international trade
- Outline the risks associated with using letters of credit
- Outline the main risks associated with international trade
- Describe the main methods of payment used to settle cross-border trades
- List and describe the main commercial documents used in international trade
- Explain the role of banks in both facilitating payments and providing funding for international trade


Module 1: Trade Finance - An Introduction
Topic 1: Risks of International Trade
Topic 2: Methods of Payment
Topic 3: Key Commercial Documents
Topic 4: Role of Banks in Trade Finance

Module 1: Letters of Credit - An Introduction
Topic 1: Overview of Letters of Credit
Topic 2: Risks Associated with Letters of Credit

Module 2: Letters of Credit - Types
Topic 1: Basic Features of Letters of Credit
Topic 2: Special Features of Letters of Credit
Topic 3: Standby Letters of Credit



SFC:2.5, PWMA:2.5
All Member: HK$650
Non-Member: HK$925
Staff of Corporate Member: HK$650