USING LETTER OF CREDIT IN DOMESTIC TRADE

HRD Corp Programme Number : 10001331432

This programme is only available for In House training. 

PROGRAMME OVERVIEW

Besides payment by cash or giving credit terms to the buyer in a local trade transaction, the Letter of Credit (LC) is another critical payment method as it determines the financial commitment of the buyer. The use of an LC plays a significant role in assessing the creditworthiness and risk associated with the transaction and gives the seller assurance of payment upon compliance with the LC terms.

This 1-day “USING LETTER OF CREDIT IN DOMESTIC TRADE” programme is designed to provide participants with comprehensive knowledge and practical insights into the workings of Domestic Letters of Credit in the context of trade finance. Participants will gain a thorough understanding of the various aspects of domestic LC transactions, including their purpose, types, processes, and the essential documents involved.

OBJECTIVES

Upon completion of this “USING LETTER OF CREDIT IN DOMESTIC TRADE” workshop, participants should be able to:

  1. Understand key concepts of Letter of Credit
  2. Use Letter of Credit with confidence
  3. Learn proper handling procedures from sending offers to receipt of payment.
  4. Learn to minimize risk of document discrepancies and reduce delay in payment 

COURSE OUTLINE

  1. Introduction to Letter of Credit
  • Definition and purpose of Letter of Credit
  • Key parties involved: applicant, beneficiary, and issuing bank
  • Risks associated with Letter of Credit
    • Risks to the applicant
    • Risks to the beneficiary
  • Recourse for seller if LC is unpaid
  • Advantages and disadvantages of using LC in domestic transactions
  1. Obligations and Liabilities of Parties
  • Responsibilities of the applicant, beneficiary, and issuing bank
  • UCP 600 rules and how they apply to domestic LC
  1. Types of Letters of Credit
  • Revocable
  • Irrevocable
  1. Steps in Establishing an Irrevocable LC
  • Establishment of LC by applicant
    • The information required in the LC Application form
    • Negotiation between buyer and seller on agreed terms
    • Fees and cost – who pays what
  • What are basic requirements in accordance with UCP 600
  • Diagrammatic process flow of LC
    • From banks to the seller
    • From presenting documents by seller to settlement
  1. Financing and Payment under Domestic LC
  • Methods of payment: sight payment and deferred payment
  • Examination and presentation of documents
  • Risks and safeguards in payment process
  • Presenting bank’s role
    • Timeframe to check documents
    • International Standard Banking Practice (ISBP) for acceptable discrepancies and abbreviations
    • Decision to honour or dishonour presentation of documents / negotiable credit
  • Amending the terms of the LC
  1. How to Reduce Discrepancies in Documentation
  • Highlight of relevant Articles of UCP 600
  • Right Data in the Right Document
  • What to Demand in Your Letter of Credit
  • What to Avoid in Your Letter of Credit
  • Proper Ways to Handle Your Documents
  • Case study

METHODOLOGY

A mixture using lecture, exercises case studies.

WHO SHOULD ATTEND?

This course is specially designed for those who are involved in:

  • Frontlines Business Sales & Marketing
  • Purchasing and Supply
  • Credit Control
  • Supply Chain
  • Finance & Administration

FACILITATOR

Nancy Ong Chen Gan,

MBA (Strathclyde, U.K.), Dip. In Banking (U.K.),

TESOL (Australia).

Nancy pursued her passion to teach through the training profession after leaving her career in banking of 30 years. Fifteen years on and she has successfully conducted workshops and trained many people in trade financing, credit management and business communication.

She has worked in management positions in branches and later at head office of OCBC Bank where she headed Treasury Operations before her retirement. Her vast knowledge and experience in banking are the keys to the success of her training and workshops. With a clear understanding of the business environment she is able to help bridge the gap in the industry of trade financial instruments and the associated financial risk for participants to gain the skills necessary to apply in their area of work. Participants are able to recognize the financial and operational risks to help them increase organizational effectiveness when using these financial instruments.

Nancy’s passion for English business writing and communication stems from her career where her job had given her many opportunities to write and speak to many levels of management in planning, presenting and decision-making. Combining her proficiency in English and a clear understanding of the business environment, she is able to impart her skills and knowledge in business communication to others who care to improve themselves for their career advancement through her training such as “The Art of Writing a Good Report” training.

Using simple and proven techniques to deliver her workshops, she has received excellent ratings from the participants.

A certified PSMB trainer, she also holds an MBA from the University of Strathclyde, United Kingdom, a Diploma in Banking from United Kingdom, and a certificate in the Teaching of English to Speakers of Other Languages (TESOL) awarded by Teach International, Australia.

Click Here to Download Nancy Profile

CONTACT US FOR A QUOTATION 

Email :sales@wanfahprosper.com

WhatsApp : +60162634929

CANCELLATION / TRANSFER

Upon registering, participant(s) are considered successfully enrolled in the event.  Written cancellations / transfer notice (substitution or to later dates) received :

  • More than ten (10) working days before the event, a refund (less administrative charge of 15%) will be made.
  • Ten (10) working days or less before the event, no refund will be made.
  • For no show on the day of the event, full payment is required. If you cannot attend the event, you can nominate a substitute at any time without payment of an administration fee.
  • A full (100%) refund may be granted if the course is cancelled by Wanfah Prosper PLT (WFP). WFP reserves the right to postpone or cancel the event and / or change facilitator at any time should circumstances beyond its control arises. WFP also reserve the right to make alternative arrangements without prior notice should it be necessary to do so.

PAYMENT

Please make cheque payable / direct credit to :WANFAH PROSPER PLT

Accounts Number : 3812930508

Bank : Public Bank Berhad

DATA PROTECTION

Personal Data is gathered in accordance with the Personal Data Protection Act 2010 (Act 709)