Getting Paid in International Trade
The world of rapid technological advancement means that companies of any size, in just about any location, can sell their products and services in international markets. Whilst sales and marketing activity becomes increasingly sophisticated and can use many of the increasing online commercial and social platforms to access a wider target market, the question of payment remains more complex.
There have been many developments in the fintech sector which expedite the payment process, however international trade still presents many challenges. What payment options are available and what terms should you offer? Cash in advance, staged payments, open account, documentary collection or letter of credit? Can you decide or does the market dictate your options? How do you mitigate the many risks associated with international payment, such as creditworthiness of your customer, exchange rate fluctuation, political and economic instability? What is the impact of the export payment cycle on the company’s cash flow?
This full day course explores all of the above in a practical, interactive environment. It is suitable for staff within an organisation who have a responsibility for export finance, developing business in overseas markets and negotiating payment terms with international customers. None of these departments can work in isolation, and it is essential that some of the key information is shared with colleagues so that they understand the importance of processing the export order correctly in order to get paid!
By the end of the day, delegates will have a clear understanding of the following:
- Key terminology associated with export payments
- The international trade cycle and where payment fits in
- The different methods of payment used in international trade and how to comply with the requirements of these
- The importance of export documentation in securing payment
- How to evaluate and mitigate payment risk
- Procedures and parties involved in Letters of Credit, the different types and how to comply with the requirements of each
They will leave with comprehensive notes and reference materials, and, most importantly, the confidence that they understand both the options and mechanics of getting paid in international trade.
Structure of the Day
9.30am Introductions and Icebreaker exercise
- The international trade cycle
- Methods of Payment – what are your options and how do they work?
- Five C’s which influence your choice of payment
1.00am Coffee break
11.15am Payment risk and how to manage it
- The importance of Incoterms and documentation in the payment process
1.1 pm Fintech developments and alternative financing
- Letters of Credit – what they are and how they work
3.00pm Coffee break
3.15pm Key terminology and information required with Letters of Credit
- UCP 600
- Common mistakes with Letters of Credit
Workbook including summary notes of key topics