Overview

This eCourse consists of three modules. Module 1 looks at how exporters can offer flexible payment terms that strike a balance between their interests and those of importers. It builds on knowledge of basic trade finance tools (such as letters of credit) by exploring trade finance techniques that mitigate the risk of nonpayment and also provide funds to solve cash flow problems that can arise for exporters offering more flexible credit terms.

The International Chamber of Commerce (ICC) has published rules, called ‘Incoterms’, which govern the delivery and the transportation of goods. These terms have gained widespread commercial and legal acceptance across the globe. Module 2 provides an overview of the latest version of these rules (Incoterms 2010), including their application and practical use.

Module 3 describes the concept of structured trade finance in detail and how it differs from traditional trade finance. You will also learn about the different types of structured trade finance solutions and the role of the different lending institutions involved.

Objective

On completion of this course, you will be able to:
- Outline the main types of export working capital financing provided by commercial banks
- Describe the role of export factoring as a financing tool in international trade
- Explain the concept of forfaiting and how it differs to factoring
- Understand the importance of export credit insurance in international trade finance
- Describe how export credit agencies (ECAs) can assist exporters who have difficulties obtaining financing through traditional commercial sources
- Describe the rules and typical usage for each of the 11 Incoterms 2010
- Outline how Incoterms 2010 can be applied in trade transactions
- Explain the concept of structured trade finance and how it differs from traditional trade finance
- Describe the different solutions offered by structured trade finance providers
- Outline the role of development banks and export credit agencies (ECAs) in structured trade finance

Content

Module 1: Export Finance
Topic 1: Export Working Capital (EWC) Financing
Topic 2: Export Factoring
Topic 3: Export Forfaiting
Topic 4: Export Credit Insurance
Topic 5: Export Credit Agencies (ECAs)

Module 2: Incoterms 2010
Topic 1: Basics of Incoterms 2010
Topic 2: Application of Incoterms 2010

Module 3: Structured Trade Finance
Topic 1: Overview of Structured Trade Finance
Topic 2: Structured Trade Finance Solutions
Topic 3: Role of Development Banks & ECAs in Structured Trade Finance