Advanced Letters of Credit

In today’s business world, understanding the finance and accounting knowledge is no longer an option for management and executives. Indeed, organizations will be able to perform better and achieve superior results if all staff in the organizations are able to apply relevant finance and accounting tools in their jobs and functions. Whether it is a new business or an existing one, cash flow management will always be a significant component contributing to the success of an enterprise’s operation. Therefore, this course is designed to discuss the main features of cash flow statement, the techniques and methods to develop cash flow budgeting, and interpret the performance of an organization using the cash flow statements. This one-day seminar also highlights the important considerations when performing cash flow budgeting and interpretation of cash flow statement.

Who Should Attend?

Managers and executives who do not work in accounting, but who need to know how basic accounting work, and apply accounting related techniques when making business decisions.

Course Outlines

1. Common pitfalls in LC operations
2. Misconception of the role of sales/marketing team
3. Instalment shipment vs partial shipment
4. Presentation period
5. Forged LCs
6. Consignee trap on airway bill
7. 10% retention sum
8. Buyer receives all the documents under the LC, but goods may differ
9. Claused bills of lading
10. LC expired
11. Absence of documents called for in the LC
12. Insurance cover effective date
13. Combined transport document pitfalls
14. Bills of lading confusion pitfalls
15. Specific ports of lading and discharge
16. Transport document signing capacity pitfalls
17. House airway bill pitfalls
18. Qualified LCs
19. Special conditions in LCs
20. Groundnuts vs peanuts
21. Soft clauses in LCs
22. FOB pitfalls
23. Incoterms pitfalls
24. Incompatible terms in LCs
25. Issuing bank wishes to protect itself
26. Terms and conditions dominated by a powerful seller
27. Inspection certificate trap
28. LC charges pitfalls
29. Expiry date and place of presentation trap

Trainer Profile

Financing international trade is a risky business, this seminar helps traders to interpret the risks, and shows them how to protect themselves. As traders don’t have to work long in the business to realize that international trade is not just about buying and selling. It involves international transport, and that means putting cargoes in the hands of transport operators who are sometimes unscrupulous or under-capitalised. So this seminar will illustrate the risks and fraud possibilities on how buyers and sellers are the losers as well as how buyers and sellers collaborate to cheat Banks and Insurance companies. Fraudsters and unscrupulous traders can abuse these weakness to the detriment of exporters, importers, bankers and shipping agents. The course will share with participants many practical case studies collected through many years of research as well as through contacts with exporters and importers and bankers during numerous public seminars conducted over the last 12 years. It is therefore imperative for all those using letters of credit to be aware of the risks and frauds to prevent loss, and learn from past leading court cases.