GLOBAL TRADE FINANCE PROGRAM IFC International Trade Finance e-learning Facilitated by
Since its inception in 2006, we have conducted more than 250 training programs in 67 countries, benefitting over 6,000 bankers and SMEs. ABOUT GTFP 02 Global Trade Finance Program Since 2005, IFC has provided over 26,000 trade finance guarantees under the Global Trade Finance Program (GTFP) to support more than $44 billion in emerging market trade. Through the GTFP bank network, local financial institutions can establish working partnerships with a vast number of major international banks in the Program that can broaden access to finance and reduce cash collateral requirements. The GTFP has developed an expansive network of Confirming and Issuing banks in over 90 countries. Full information on the GTFP can be found at: www.ifc.org/gtfp Trade Advisory The IFC Trade Advisory Services is an integral part of the GTFP. It provides tailored and demand-driven capacity building assistance to banks in various functional areas related to Trade Finance. Since its inception in 2006, the IFC Trade Advisory Services has amassed a substantial base of knowledge, resources and training material to support its program, and has conducted more than 250 training programs in 67 countries, benefitting over 6,000 bankers and SMEs.
www.ifctradefinanceelearning.com A recognized and affordable e-learning in Trade Finance since 2008. Structured training in best practice in International Trade Finance. Price of EUR 550 for 50 hours of interactive content, online support from a team of trade experts from ebsi Export Academy, online assessments, certificate of completion from ebsi and IFC. Certificate of completion provides 16 Professional Development Units (PDUs) towards recertification of Certified Documentary Credit Specialists (CDCS) and Certificate for Specialists in Demand Guarantees (CSDG) offered by BAFT-IFSA and IFS. 87% 0f participants received their first qualification in International Trade through the program. Learner joins worldwide network of participants with similar focus on developing international trade finance knowledge and skills. Previously known as the IFC FIT initiative, this specialized training program, sponsored by IFC, has over 800 professional graduates. This e-learning program has been revised, updated and expanded. ebsi Export Academy ebsi Export Academy has worked with the International Finance Corporation in developing the IFC Trade Finance e-learning program using its extensive team of trade finance experts and industry knowledge to create a practical and focused standard qualification for trade bankers all over the world. ebsi Export Academy provides specialist International Trade and Trade Finance Training to SMEs, Large Corporates, Banks, Government agencies and International Trade Development Agencies around the world. They are a provider of online trade finance training for a number of multilateral development banks and work closely with some national committees of the International Chamber of Commerce. ONLINE LEARNING 03
Modules 1. Methods of Payment INTRODUCTION: Classification of Different Methods of Payment Criteria for the Choice of a Method of Payment Factors Affecting the Importer s and the Exporter s Choice Trust and Good Faith Bank Services Receiving Payment for Bad Debts - Collection Agencies Analysis of Methods of Payment Other Methods of Payment for Export Payback Non-Monetary Methods of Payment PAYMENT BY CHEQUE BANK DRAFT BANK TRANSFER: Documentary Payment Order CLEAN COLLECTION DOCUMENTARY COLLECTION COURSE OUTLINE COUNTRIES AND PAYMENT TERMS BONUS: China Systems BPO demo BPO Opening Screen BPO Background What is BPO BPO Process BPO Process schematic BPO Final 2. Documentary Collection INTRODUCTION: Definition of Collections Collections Background Collection Instructions The Collection Order DOCUMENTARY COLLECTION: Documentary Collection Documentary Collection Cycle CLEAN COLLECTION BILL OF EXCHANGE : Term Bills Guaranteed or Avalized Bills of Exchange MANAGING COLLECTIONS : Documentary Collections - Workflow Summary Overview of the Uniform Rules for Collections 3. Documentary Credits Fundamentals THE DOCUMENTARY CREDIT: Why Letters of Credit are Used Guarantees for the Importer and the Exporter Documentary Credit Rules Example of SWIFT The Parties to a Documentary Credit Documentary Credit Cycle Comment on Documentary Credits Graphical Summary Documentary Credit and the Importer Documentary Credit and the Exporter Suggestions for the Exporter Opinion OPENING A LETTER OF CREDIT: Opening a Letter of Credit Letter of Credit and Contract of Sale Banks and the Goods Non-Compliance with the Terms of the Contract Bank Charges THE DOCUMENTARY CREDIT: Why Letters of Credit are Used Guarantees for the Importer and the Exporter Documentary Credit Rules Example of SWIFT The Parties to a Documentary Credit Documentary Credit Cycle Comment on Documentary Credits Graphical Summary Documentary Credit and the Importer Documentary Credit and the Exporter Suggestions for the Exporter Opinion OPENING A LETTER OF CREDIT: Opening a Letter of Credit Letter of Credit and Contract of Sale Banks and the Goods Non-Compliance with the Terms of the Contract Bank Charges CONTENTS OF DOCUMENTARY CREDIT: Unconfirmed Irrevocable Letter of Credit Tolerance Partial Shipments Transhipment Type of Letter of Credit Form of Advice of a Letter of Credit Date and Place of Expiry Date of Issue of the Credit Description of the Goods Advice and Confirmation of the Letter of Credit Amendments Details on Transport IMPORT LETTERS OF CREDIT: Items to check with the importer Completing Documentary Credit (DC) Application Form Internal Records 04 TRANSMISSION OF DOCUMENTARY CREDIT: Charges for Documentary Credits
4. Management of Documentary Credits AVAILABILITY OF LETTER OF CREDIT: Letter of Credit available by Acceptance Letter of Credit available by Negotiation DOCUMENTS IN A LETTER OF CREDIT: Documents for Presentation Comment on UCP Which Documents to Request? Copies or Originals? Other Documents and their Contents Discrepancies Action if Documents have Discrepancies Summary of Action if Documents are Discrepant Clean Transport Document On Board Bill of Lading Sea Waybill Insurance Documents Date of Issue of Insurance Documents CMR Convention Air Waybill CHECKLISTS FOR DOCUMENTS IN AN L/C TYPES OF LETTER OF CREDIT (I): Revocable Letter of Credit Transferable Letter of Credit Back-to-Back Letter of Credit Standby Letter of Credit Revolving Letter of Credit Red and Green Clause Letters of Credit Latest Developments in Letters of Credit TYPES OF LETTER OF CREDIT (II): Irrevocable Letter of Credit Confirmed Irrevocable Letter of Credit Unconfirmed Irrevocable Letter of Credit Summary - Types of Documentary Credit 5. Bonds and Guarantees INTRODUCTION: Issuers of Guarantees Categories of Bonds or Guarantees Tender Bond Exporters and Tender Bonds PERFORMANCE BOND: Purpose of Performance Bond or Guarantee Exporters and Performance Guarantees Performance Guarantees and Documentary Credits Amount of the Performance Guarantee ADVANCE/ PROGRESS PAYMENT BOND: Purpose of Advance/Progress Payment Bond or Guarantee Advance Payment Guarantees and Documentary Credits Amount of the Advance/Progress Payment Guarantee RETENTION BOND: Other Types of Guarantees ON DEMAND BOND: Rules Governing Demand Guarantees CONDITIONAL BOND: Advantages of Conditional Bonds or Guarantees MANAGING BONDS AND GUARANTEES: Bank Obligations to the Beneficiary Payment Guarantee Importance of Correct Wording in Bonds or Guarantees Bonds or Guarantees Customer Liability Records Procedure for Obtaining Release from Liability ICC Rules for the Issuance of Bonds and Guarantees Bank Charges and Fees in Respect of Bonds and Guarantees Standby Letter of Credit Managing Bonds and Guarantees 6. Short and Medium Term Finance INTRODUCTION: Overtrading and Liquidity Short Term Finance Working Capital Management Cash Conversion Cycle MANAGEMENT OF RECEIVABLES: Trade Receivables Policy INVOICE DISCOUNTING: Invoice Discounting how it works FACTORING: Benefits of Factoring Obstacles to Growth of Factoring Import and Export Factor Comparison between Factoring and Invoice Discounting Comparison between Factoring and Forfaiting Comparison between Forfaiting and Factoring BILL DISCOUNTING: Bill of Exchange Discounting how it works FORFAITING: Definition of Forfaiting Endorsements Aval as a Form of Guarantee Application of Forfaiting Primary and Secondary Forfaiting Markets Forfaiting and Benefits for Exporter Advantages of Forfaiting Cost of Credit The Rate of Discount Forfaiting Example 05
7. Factoring Fundamentals INTRODUCTION TO FACTORING: The Factoring Division Factoring or Invoice Purchase Procedures Initial Procedures Mechanics of Processing a Client Order THE FACTORING AGREEMENT: The Factor s Discretion Fees Termination Personal Guarantee The Contract The Contract - Warranties Purchase All Acceptable Accounts by Factor Prior Approval of Sales Notice of Assigned Invoices to appear on all Invoices Purchase Price and Margin Authorization to the Factor for Charges and Obligations Procedures for approved account invoices Reserve of Facial amounts of invoices over finance provided Receipt of Goods without Dispute Credit Terms Solvency and law provisions 8. ECA and Warehouse Finance ECA BASED FINANCING: Medium to Long Term Financing Market Characteristics Long-Term Financing Needs Participants in the Market Export Credit Agencies Export Credit Agencies - Protections SUPPLIER CREDITS: Supplier Credits (continued) Mechanics of the Supplier Credit Advantages of Supplier Credit Disadvantages of Supplier Credit Players and Relationships in Supplier Credit Commitment, Draw-down, and Payback in Supplier Credit BUYER CREDITS: Mechanics of the Buyer Credit Advantages and Disadvantages of Buyer Credit Players and Relationships in the Buyer Credit Commitment, Draw-down, and Payback in a Buyer Credit Buyer Credit (Refinancing) Comparison: Supplier and Buyer Credits Bank Earnings and Fees OECD Consensus or Arrangement Benefits to Banks Export Credit Insurance and the Berne Union Benefits of Export Credit Insurance Examples of Main ECA Providers and their Mission Statements WAREHOUSE FINANCE 06
9. Commodity Trade Finance STRUCTURED TRADE FINANCE COMMODITY TRADE FINANCE: Commodities and Trade What Commodities can be financed? Commodity Trade Finance The Players Commodity Finance and Risk/Mitigation LETTERS OF INDEMNITY: Letters of Indemnity Letters of Indemnity Other Purposes Working with LOIs in favor of the Carrier Things to consider when working with LOIs COLLATERAL CONTROL FOR TRADE FINANCE: Collateral Control for Trade Financing Techniques Repayment Seniority Collateral Protection Unsecured vs. Secured Lending Establishing Collateral Values Establishing Net Realizable Value ( NRV ) Accounts Receivable A Correct Receivable Inventory Inventory Insurance Advance Rates Advance Rates for Inventory Collateral Control The Bill of Lading 10. Trade Finance Fraud Identification and Prevention SPECIFICS OF INTERNATIONAL TRADE FINANCE FRAUD: Definition of Trade Finance Fraud LETTERS OF CREDIT AND UCP 600: Article 7 Issuing Bank Undertaking Article 12 b. Nomination Veracity of Documents Acting in Good Faith Entitlement to Reimbursement Case History - Fake Inspection Certificate Presented BONDS & GUARANTEES IN INTERNATIONAL TRADE: Definition of a Bond/Guarantee Reasons for Requiring a Guarantee Issuers of Guarantees Direct / Indirect Guarantees Categories of Bonds or Guarantees Customer Implications re. Issued Bonds and Guarantees Customer Implications re. Issued Bonds and Guarantees Banks Consideration when Issuing a Demand Guarantee Wording in Bonds/Guarantees Issued by a Bank Wording in Bonds/Guarantees Issued by a Bank The Guarantee and the Contract Standby Letter of Credit Guarantees, Standby LCs & Fraud - Example Scenarios THE BANK AND CUSTOMER RELATIONSHIP: Basics of Know Your Customer (KYC) Basics of Know Your Customer (KYC) Know Your Customer (KYC) Anti Money Laundering (AML) Due Diligence TRADE FINANCE FRAUD PREVENTION: The Occurrence of Letter of Credit Fraud User of Trusted Third Parties Highly Complex Transactions to Cause Confusion Authentication of Documents Money Laundering Overcoming inadequate AML Legislation The use of technology to avoid trade finance fraud LC INDEPENDENCE PRINCIPLE & FRAUD EXCEPTION 07
CERTIFICATION OF COMPLETION Graduation Guarantee For group enrolments we offer flexibility in timing and duration and a guarantee that every enrolment will result in a graduation We will replace any drop-outs or inactive participants or participants who leave the organisation free of charge (subject to a fair usage policy). 16 PDUs towards CDCS and CSDG re-certifications 800+ Professional graduates 550 EUR 50 Hours of training 08
I see myself better now than before in terms of International Trade and Finance. The IFC FIT program help me to handle conflict situations and teach me how to solve those serious issues. Nazir Hossain Head of Import & Guarantee Eastern Bank Ltd. Bangladesh This is a highly interactive, extremely inspiring and life changing program. The programs build confidence in operating Foreign Trade and Finance Business. I had the most interest in the practical based assessment sessions and was delighted with my scores in the assessment of both the qualification launched both by ICC Bangladesh in collaboration with the IFC and ebsi Export Academy. Md. Ashraf Ali Senior Human Resources Officer Mutual Trust Bank Limited Without solid foundations it is impossible to build something solid! The FIT Initiative of the IFC provides a solid foundation in the key areas for skill and knowledge in international trade finance. At Eastern Bank Limited we have seen graduates of the program move through an accelerated learning curve to become proficient in the delivery of trade finance products and services to our expanding trade customer base. Our staff have enjoyed the learning experience and appreciated being part of an expanding network of certified international trade finance professionals. Ahmed Shaheen Head of Structured Trade Finance, Eastern Bank The IFC FIT Program is a comprehensive one stop solution for all the trade finance professionals. It enriches you with the latest ICC standards and publications along with the basic concepts involved in the documentary credits. Jawad Iqbal Assosiate, Bank Alfalah Islamic Banking TESTIMONIALS 09
10 The IFC-FIT program is an eye opener as far as trade education is concern. It opened me up to the other relevant trade certifications which I have now completed like ISP Master, ITS, ACIT and UCP Upskill. Bamidele Ayemibo Trade Product Manager, Diamond Bank As a trainer, I want to say that my acquisition of the knowledge on Trade Finance through the IFC-FIT initiative gave me the necessary tools required to impact on the students who were basically management trainees for induction towards being employed by the deposit money banks in Nigeria. The online interaction was quite an experience as it afforded me to have diversed local experiences to be shared on line. Molly Akanji Executive Director, Sofomax Consult The study was so real to my daily work. I was able to practically apply most of the things learned. The material covered was relevant to Trade finance daily cases on collection and letters of credit. I was able to get answers to on complicated cases which my clients needed answers immediately. The response from the tutors was given on time and was well informed and up-to-date and relevant to the cases. The student s interaction was very exciting and interesting and the fact that the students shared freely their experiences was encouraging. Eunice Monzi Head of Trade Finance, Victoria Commercial Bank I have been a trade specialist for over a decade. Notwithstanding my experience, I would like to say that it was my participation in the IFC-FIT Initiative course that brought a turning point to my career in terms of finding practical solutions to some trade challenges for which access to ICC recognized experts and practical discussion through the trade finance forums has proven to be a real benefit. Moses Akinnawonu Group Head of Trade Services, Sterling Bank