Overview

This eCourse consists of two modules on trade finance. Module 1 provides a detailed overview of the potential difficulties faced by parties involved in trade transactions—buyers (importers) and sellers (exporters). These challenges include determining a mutually acceptable method of payment and obtaining access to suitable financial products to support transactions. Additionally, this module explores these issues in depth and examines various other aspects of trade finance.

Module 2 covers the risks and complexities of domestic and cross-border trade transactions, including nonpayment, nonperformance, and cash flow uncertainties. It highlights the use of bonds and guarantees to mitigate these risks and manage cash flow in large-scale projects.

Objective

On completion of this course, you will be able to:
- Recognise the need for trade finance products and the different types of product providers
- Identify the main methods of payment used for trade transactions and the forms of finance and other support that can be used by exporters and importers for an individual transaction
- Recognise the importance of trade documentation and the role of the various rules/guidelines published by the International Chamber of Commerce (ICC)
- Recognise why bonds/guarantees are commonly used in relation to contracts for the delivery of goods or construction projects
- Identify the different types of bond/guarantee provided by banks and other guarantors to their customers

Content

Module 1: Trade Finance - An Introduction
Topic 1: Overview of Trade Finance
Topic 2: Trade Finance Products
Topic 3: Trade Documentation
Topic 4: Uniform Customs & Rules

Module 2: Bonds & Guarantees
Topic 1: Introduction to Bonds & Guarantees
Topic 2: Risk Exposure to Guarantees
Topic 3: Processing Guarantees
Topic 4: Categories & Types of Guarantee