The use of Letters of Credit has increased significantly by UK exporters and importers because of the global economic situation, political insecurity in some markets and the withdrawal of credit insurance cover.
The major international banks report that between 60% and 70% of documentary submissions by exporters are rejected on first presentation because of non compliance with the conditions of the LC
We believe that the main causes of rejection are a lack of understanding of the underlying principles of a documentary letter of credit and a failure to construct a workable LC that directly relates to the sales or purchasing contract. These failures can lead to increased costs for all parties, loss of goodwill, delayed payment and possible default.
To use Letters of Credit effectively importers and exporters will need to fully understand the dynamics and terminology of an LC, the role of each party, the importance of the shipping documents and the level of security offered.
This seminar will examine the Letter of Credit process in detail and offer guidance on how to create a workable credit. It will consider the different interests of the exporter, importer and the banks and methods of reducing the risks for all parties.
It will also suggest methods of creating and collating accurate documents; explain the role of the draft (Bill of Exchange); consider the options for negotiation of the credit and the current version of the rules that govern letters of credit (UCP600)
This course is graded as entry level and is suitable for both importers and exporters.The content will be relevant to field and office based sales staff, purchasing staff, shipping and despatch personnel, accounts and finance staff, customer services, freight forwarders. No previous knowledge or experience is necessary and it will be suitable for experienced personnel who require an update on the latest rules.
The trainer will use oral and visual presentations, reference to fictitious and real examples and participatory exercises to illustrate course content. The delegates will receive copies of the presentation and a workbook for future reference.
Please see our terms and conditions for our cancellation policy. You must agree to these conditions before continuing to book.
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