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Training Course Summary:

Fifty percent of documents presented under letters of credit are rejected by the banks because of discrepancies. This course will enable delegates to understand the mechanics of handling letters of credit in simple terms from the exporter’s point of view. They will learn what they can do, in practical terms, to improve letter of credit performance, and ensure good management and collection mechanisms.


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 in-coming letters of credit, using a reliable check-list.
Appreciate how bills of exchange work with letters of credit.

Who Should Attend:

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

Training Course Overview/Content:

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 500

The Uniform Customs and Practice for Documentary Credits, publication 500 explained
The importance to the exporter
The key points contained in UCP500 and how they support the exporter