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Course Outline: Trade Finance & Cash Management Services
Chapter Introduction to Transaction Banking Topics Introduction to Trade Risks in International Trade What will you learn? Understanding why and how trade takes place This covers the types of risks faced by the parties involved, such as country risk, credit risk etc. This gives you an overview of the documents required for a trade transaction These terms determine the cost, risks and responsibilities of the buyer and seller. The process underlying such a payment, and the conditions under which such terms and conditions are decided. The process underlying such a payment, and the conditions under which such terms and conditions are decided. The process underlying such a payment, and the roles of the different banks involved, such as Remitting Bank, Presenting Bank etc. Understanding terms such as Documents against Payment, Documents against Acceptance etc. Typical risks faced by the buyer and the seller in a trade transaction How an LC works and the parties involved The detailed workflow of an LC, roles of various parties and the risks involved Classification of different LCs and the circumstances under which such LCs are issued. An overview of the guidelines governing international trade A live illustration of a trade transaction with an LC and how it works in practice. The various financing options available to an exporter, and their evaluation in practice How Bill discounting works, and the risks faced by the bank 2 Hours 6 Hours Recommended Study time 4 Hours

Types of Trade Documents

INCO Terms

Types of Trade Transactions

Advance Payment and its Process flow Open Account and its Process flow Documentary Collection and its Process flow

Types of Collections

Risks faced by buyer and seller Parties in an LC Transaction Issuance & Settlement

Types of LCs

UCPDC LC Case Study Live Case

Trade Finance

Trade Finance for Exporters

4 Hours

LC Bill Discounting (LCBD)

Finitiatives Learning India Pvt. Ltd. (FLIP), 2012. Proprietary content. Please do not misuse! +91.9243.666.002/3info@learnwithflip.com

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Factoring How Factoring works, and the services provided under Factoring How buyers' credit and suppliers' credit works, and when they are typically used in practice Types of guarantees, and the situations under which the different guarantees are used in practice. Circumstances under which bank guarantees are invoked, and the process involved. The different fee structures for the trade services offered by banks, and how they are calculated. The different components of the charges for bank guarantees and export credit, and how they are calculated. The reasons for holding cash, and the challenges faced by a cash manager What determines the size of cash holding in a firm, and the factors impacting cash position. How cash management is structured in an organisation, and the benefits of centralization. The different parties in the payment process - payer, payee etc. The concept of float, types of payments - physical and electronic The detailed process of how receivables are collected. The types of instruments and the collection process for each in detail. A live illustration of the receivables management process in a company Details on NEFT,RTGS,ECS etc. and how they work Other services such as escrow accounts, and Dividend payout services A live illustration of the payables management process in a company Total 32 Hours 2 Hours 2 Hours 2 Hours 4 Hours 2 Hours 4 Hours Trade Finance for Importers Bank Guarantees Types of Bank Guarantees

Invocation of a Guarantee

Pricing of Trade Products

Pricing for LC related services Pricing for Bank Guarantees and Pre/Post Shipment Credit

Cash Management Services (CMS) Introduction

Understanding liquidity

Cash management strategy Impact of centralized/decentralized management Players in the Payment System Key Terms

Payment Systems An Introduction

Receivables Management

Process Products under receivables management Case study on receivables management

Payables Management

Types of payments CMS other services

Case study on payables management

Finitiatives Learning India Pvt. Ltd. (FLIP), 2012. Proprietary content. Please do not misuse! +91.9243.666.002/3info@learnwithflip.com