Trade Finance Operations
|
|
- Tamsin Stevens
- 8 years ago
- Views:
Transcription
1 Trade Finance Operations A Solutions View on Traditional Trade Products Beirut, Lebanon, March 2010 Alexander R. Malaket, CITP, President OPUS Advisory Services International Inc.
2 Summary Trade finance is often lost in a bank, and trade operations is undervalued in the trade finance value proposition Innovations in trade finance, coupled with the profile gained since September 2008, have highlighted the importance to global business Traditional products still add value: Even more so, as part of a business solution! A holistic view of the trade finance business, within banks, together with a solutions view of client needs, will set a constructive way forward Trade Ops Staff: Look Beyond the Documents to the Business Solution!
3 We could say this today, too! Short-term credit/trade finance has been associated with the expansion of international trade in the past century, and has in general been considered as a routine operation, providing fluidity and security to the movement of goods and services. Short-term finance is the true life-line of international trade. Improving the Availability of Trade Finance During Financial Crises WTO Publications, 2003 The current crisis has generated unprecedented profile for Trade Finance
4 Yet, Trade Finance is often Lost in a Bank We have excellent profile in the Bank: our division head reports directly to the vice-chair, and often helps us make the case for trade finance support from the Bank s executive? Well, the Board will leave us alone as long as we are making money Our chairman recently briefed the CEO of a major global client on what we believe is a key trend in trade finance. That kind of senior-level communication is invaluable.. and Trade Finance Operations even more so!
5 Trade Finance as a Business Mature business, established product offerings and shared practices across the globe. Some innovation Credit-driven, with four main pillars: payments, financing, risk mitigation and information Highly commoditized despite complexity and expertise High fixed-cost business, increasing margin and profitability compression Value & profitability to banks P&L is very poorly understood Increasing demands related to compliance, globally Internally fragmented: Sales & Operations rarely in optimal alignment
6 Trade Operations: Undervalued Asset I don t care if you have a bunch of hamsters in the back-office processing the transactions, as long as the client-facing system looks good and we bring in the business - Senior Trade Executive, New York, circa 1998 Whenever I ask a bit deeper question about the operational side of the issue, people are stuck from the operational side, their know-how is very poor. Reporting & booking is very, very important. You might end up with a very bad working capital structure, or a worsening of return on invested capital. This is a point which blocks the deal, where we end up with no transaction at all. - AGM Finance, Istanbul, 2010
7 Trade Operations: Linking Product & Relationship Relationship Proven Evolving OBSOLETE? Collections Open Account New L/C Low Medium High Expertise New relationship, low expertise in trade, represents highest risk, all else being equal This model looked obsolete, but traditional products/features are back
8 Every Trade Finance Product Provides some combination of: Payment Facilitation Financing Risk Mitigation Information Including the emerging Supply Chain Finance & Working Capital Solutions
9 To Illustrate: Documentary Credits Sales Contract and Delivery of Goods Importer (Buyer/Applicant) Importer Payment, Exchange for Documents Exporter (Seller/Beneficiary) Exporter Documents, Exchange for Payment Issuing Bank Verification & Transmission of Documents, Remittance of Funds Advising Bank (Confirming Bank)
10 Documentary Credits Documentary Credits are typically used between trading partners wishing to ensure mutual security in a transaction They may also be required as the basis for financing; Banks will often discount or advance funds due under a Letter of Credit. The need to use L/C s may arise out of financial arrangements independent of the buyer/seller relationship (to access FX, for example) Banks have extensive and well-established roles and obligations to ensure that the terms and conditions of these instruments are met The Issuing Bank structures and issues the Letter of Credit on behalf of the Applicant, but the Credit, once issued, represents a "promise to pay" by the Issuing Bank
11 Documentary Credits The Advising Bank receives, authenticates and verifies the L/C, then Advises" it to the exporter Documentary Credits may include a separate payment undertaking by a Confirming Bank, which may be sought by the exporter Discrepancies in the Shipping Documents against the L/C terms can cause the transaction to fail, or they may be waived to permit conclusion of the transaction % of documents tendered by exporters under L/C's have some type of discrepancy Governed by the Uniform Customs and Practice for Documentary Credits (UCP 600), International Chamber of Commerce, Paris, and periodic revisions thereto
12 Documentary Credits: Back-to-Back Master = Collateral Master Master L/C L/C Sales Contract and Delivery of Goods Exporter (Seller/Beneficiary) Backto Backto Back Back L/C L/C Sales Contract and Delivery of Goods Importer (Buyer/Applicant) Exporter (Seller/Beneficiary) Becomes Importer/Applicant Importer (Buyer/Applicant) Exporter (Seller/Beneficiary) Importer Payment, Exchange for Documents Exporter Documents, Exchange for Payment Importer Payment, Exchange for Documents Exporter Documents, Exchange for Payment Issuing Bank Verification & Transmission of Documents, Remittance of Funds Advising Bank (Confirming Bank) Issuing Bank Verification & Transmission of Documents, Remittance of Funds Advising Bank (Confirming Bank) which also offer some uniquely useful & flexible features
13 Trade Products & Operations: A Solution View Trade financiers including Operations Specialists need to look beyond the flow of documents and the processing of transactions This is a business solution for trade clients Once such a view is adopted, it is much easier to take an integrated approach to trade finance where sales/relationship specialists AND operations specialists work together Look to the future: if you process documents, you shuffle paper. If you provide a client solution, you create value
14 The L/C as a Risk Mitigation Solution Commercial Risk Political/Country Risk Importer (Buyer/Applicant) Exporter (Seller/Beneficiary) Issuing Bank Advising Bank (Confirming Bank) Bank Risk
15 The L/C as a Risk Mitigation Solution Importer (Buyer/Applicant) ECA Cover Importer (Buyer/Applicant) Exporter (Seller/Beneficiary) Incoterm Payment type/timing L/C Exporter (Seller/Beneficiary) Issuing Bank Confirmed L/C Issuing Bank Advising Bank (Confirming Bank) Guarantee/IFI Programs Advising Bank (Confirming Bank) Country 1 Confirmed L/C Confirmed L/C Payment Terms ECA Cover Country 2
16 The L/C as a Financing Solution UCP ECA Cover ECA Cover Negotiations Contracting L/C Issuance Document Preparation Shipment Settlement TF as a competitive advantage Payment Terms Bank Re-Finance Invoice Financing/ Factoring Pre-shipment Finance Buyer Credit Financing shifts the timing of Financial Flows & Risks between parties Importer/Buyer Exporter/Seller
17 The L/C as a Financing Solution Warehouse receipt financing: Pre-shipment collateralized loan, using goods stored in independent warehouse Trust Receipt Financing: Financing of the importer after the release of the Bill of Lading and the goods, on the basis of a trusted relationship and the expectation of repayment after sale Financing based on a Banker s Acceptance: tenor, discount rate can finance the beneficiary/exporter, or either Bank Financing of foreign receivables transactionally or on a pooled basis: advance a percentage of the receivables, with full recourse Factoring: purchase of invoices on a non-recourse basis; factors must conduct effective credit assessments, therefore often become very involved in the Exporter s credit analysis and bookkeeping Aval: The act of having a third party (usually a bank) guarantee the obligations of a buyer to a seller per the terms of a contract such as a promissory note or purchase agreement.
18 The Client View: Solution, not Product! We take a ten-year view of our trade banking relationships, assess the direction of the Bank and the compatibility of our value systems Open Account is increasingly important to us, but the products and services available simply do not meet our needs. We are in a highly competitive and volatile commodity business. If I have to operate 24/7 to meet the needs of my clients across the globe, my trade bank has to keep up We are not interested in technology for its own sake. If the tool adds value, we will look at it, however, our processes in L/C transactions are optimized to the point where we prefer to use letters of credit than to shift to Open Account, or some other option The last speaker claims to process 20,000 transactions/year with 2 FTEs
19 The Solution View Links to TF Ops Trade Bank Client Organization Finance, Treasury Sales and/or Structured Trade Channels Trade Services Operations O B J E C T I V E S Functions Supporting International Trade Client Supply Chain Business Objectives/Solutions Traffic Dept., P.O. Processing Integrated Trade Finance Model Channels for client information, Internal communications and staffing Service delivery based on client objectives And business solutions Holistic approach with broad access to Client Organization OPUS Advisory, 2004
20 Operations & the Client/Solution Connection Trade operations capabilities are expensive to maintain IT implementations can cost up to US $30 Million Technology solutions from TradeCard to TSU are still working to virtualize some or all of the trade transaction flow Staff shortages have been an issue, though the crisis & resulting exit of banks from trade finance has mitigated this issue Staff development is critical: timelines vary from 5-7 YEARS to 6 MONTHS (Consider the CDCS Program) Productivity among trade banks can vary by 700% Compliance is a complex and increasingly critical issue in trade finance Response to these issues determines success in client solutioning
21 Client Solutions & Compliance Bank Regulations Commercial Regs KYC OFAC The Boarder BIS Environmental Regs Foreign Regs Advising Bank (Confirming Bank) Insourcing Bank Exporter (Seller/Beneficiary) Issuing Bank Importer (Buyer/Applicant) Limited understanding of trade among auditors & compliance specialists Lack of clarity about the nature of transactions & their associated risk Limited communication & MIS specific compliance issues The only way we can be fully compliant today, is to turn off the lights, close the door and go home - Senior European Trade Banker, 2006
22 Bottom Line? P & L: Is the Business Profitable? Trade Operations: Is the Model Effective & Leveraged? RM s & Sales: Does Trade Have the Necessary Profile? Client Value: Do Clients See a Business Solution? Trade Operations is an important piece of the puzzle: Leverage an Undervalued Asset!
23 Thank You.
Frequently Asked Questions Trade Services
Frequently Asked Questions Trade Services IMPORT LETTER OF CREDIT What are the various forms of Import Services? (Payment instruments) in International Trade? There are two main options: Letter of Credit
More informationISO20022 Trade Services Dashboard Description of business processes. ISO20022 - Trade Services Description of Business Processes
ISO20022 Trade Services Dashboard Description of business processes 1 Trade Services Description of Procurement: Sub-Functions Tendering Ordering Delivering Invoicing Process for buyer to contact potential
More informationPURCHASE SALE. Customised Solutioning and Advisory Services. Global Transaction Services Simplified Banking. Customised Solutions
Customised Solutioning and Advisory Services ING Vysya Bank offers advisory services relating to FEMA, EXIM Policy, URC, UCPDC, URDG, ECA Financing and ECGC through vastly experienced trade finance practitioners
More informationBAFT-IFSA. BAFT-IFSA Product Definitions for Open Account Trade Processing and Open Account Trade Finance
BAFT-IFSA Product Definitions for Open Account Trade Processing and Open Account Trade Publication Date: December 13, 2010 (Original) / REVISED May 2011 and Open Account Trade Section 1: Introduction Banks
More informationExport Transactions. Finance and Risk
Export Transactions Finance and Risk Table of Contents Export Finance Export Finance Methods Pre-Export Export Finance Methods Post-Export Structured Commodity Finance Export Risk Forms of Export Risk
More informationGlobal Transaction Services
Global Transaction Services Cash Management Trade Services and Finance Securities and Fund Services Maximizing the Benefits of Export Letters of Credit: A Risk Mitigation Tool William E. Morrissey Director
More informationINTERNATIONAL PAYMENT METHODS
S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L INTERNATIONAL PAYMENT METHODS Broward Economic and Small Business Development Export Readiness Semiar February, 2012 Abby Martinez Vice President
More informationIndex. call options 102 cap and floor options 103 capital goods 125 capital markets 145 capital risk 111 cargo insurance 16
Index acceptance 50 accessory obligation 71 Act of God 24 advance payment 35 advance payment guarantee 77 adverse business risks 20 advising bank 48, 73 air waybill 43 amendments 55 annuities 150 anti-corruption
More informationOptimizing Payment Cycles for Trade Payables and Receivables
Optimizing Payment Cycles for Trade Payables and Receivables Houston Treasury Management Association Space City Cash Conference September 2013 Madeline Sprague, HSBC Bank USA, N.A. Global Trade & Receivables
More informationTrade Finance & Liquidity Management. - 5 May 2010 -
Trade Finance & Liquidity Management - 5 May 2010 - Agenda Trade Finance Concepts & Trends SWIFT Trade Finance Offering BIS Solutions in the Trade Space Managing Liquidity BIS Solutions on Liquidity Mgt.
More informationBAFT-IFSA Product Definitions for Traditional Trade Finance Publication Date: May 2011
BAFT-IFSA BAFT-IFSA Product Definitions for Traditional Trade Finance Publication Date: May 2011 1 BAFT-IFSA Product Definitions for Traditional Trade Finance Section 1: Introduction Banks have long provided
More informationAl-Saudia Virtual Academy Pakistan Online Tuition Online Tutor Pakistan
Al-Saudia Virtual Academy Pakistan Online Tuition Online Tutor Pakistan LETTERS OF CREDIT Introduction: As the world s economy expanded, international trade started. In the beginning, there were serious
More informationINTERNATIONAL FINANCIAL SETTLEMENTS
INTERNATIONAL FINANCIAL SETTLEMENTS Dr Katarzyna Sum Chair of International Finance Warsaw School of Economics Lecture information The material for the lectures is available on my website http://akson.sgh.waw.pl/~ksum/
More informationInnovative Trade Finance Solutions for SMEs
Innovative Trade Finance Solutions for SMEs Murali Subramanian EVP, Transaction Banking Head 20 th April 2011 Overview of ADCB Incorporated in 1985 following a merger of 3 banks Owned 64.8% by Government
More informationShift from Letters of Credit to Open Account using Electronic Supply Chain Management Tools
Shift from Letters of Credit to Open Account using Electronic Supply Chain Management Tools Christopher A. Conn Senior Business Manager Trade & Supply Chain Management Americas Banking Initiatives SWIFT
More informationPAYMENT TERMS AND EXPORT FINANCE RESOURCES
GENERAL INFORMATION A successful export transaction starts with the negotiation of a sales contract and ends with a timely payment. The buyer/importer gets the product they want and pays the seller/exporter
More informationFORFAITING. A useful tool in Trade Finance
1. What is Forfaiting? 2. Which instruments are eligible for forfaiting? 3. Why does the Exporter like the forfaiting tool? 4. What is the advantage for the Importer? 5. Any advantage for the Importers
More informationEnhancing Supply Chain Finance with Bank Payment Obligation (BPO)
Enhancing Supply Chain Finance with Bank Payment Obligation (BPO) Peter Chin Sibos 2013 Dubai September 17, 2013 Copyright 2001 2013 Premium Technology, Inc All Rights Reserved BPO Enhancing Open Account
More informationContact details and instructions for trade transactions.
Contact details and instructions for trade transactions. Rabobank Nederland - Trade Services Contact details Delivery trade transactions For new transactions please use the online transaction service Rabo
More informationOVERSEAS TRADE FINANCE ( OTF )
OVERSEAS TRADE FINANCE ( OTF ) Port to Port Trade Finance Trade Finance Equity Trade Finance Report 3 Port to Port Trade Finance Trade Finance Equity Overseas Trade Finance specialise in sourcing trade
More informationPartnership for Global Reach Trade Products Brochure
I I Partnership for Global Reach Trade Products Brochure I I INTRODUCTION Whether you are a buyer or seller of goods or services, we at Hong Leong Bank, with our extensive network of agent banks worldwide
More informationGuide to importing and exporting
Guide to importing and exporting September 2011 Version 41 Table of contents Introduction 4 We have the solutions for your needs...4 Important Information...4 Getting started 5 What do I do first?...5
More informationCUSTOMER JOURNEY GUIDE - TASDEER FINANCIAL SERVICES
CUSTOMER JOURNEY GUIDE - TASDEER FINANCIAL SERVICES APPLY Submit an official request letter and all the requested documents (for ) 1 Day Client Meets with TASDEER RM Discovery Your Journey with TASDEER
More informationINTERNATIONAL TRADE FINANCE SERVICES
INTERNATIONAL TRADE FINANCE SERVICES DOCUMENTARY LETTERS OF CREDIT A PRACTICAL GUIDE CONTENTS LETTERS OF CREDIT SIMPLY DEFINED.............................................2 BENEFITS OF A LETTER OF CREDIT...............................................3
More informationSmall and Medium Enterprises
Small and Medium Enterprises YOUR LOANS Small and Medium Enterprises Financing Products for Your Business A consumer education programme by: contents 1 Introduction 2 The right product for the right purpose
More informationCUSTOMER JOURNEY GUIDE - BUSINESS FINANCE
CUSTOMER JOURNEY GUIDE - BUSINESS FINANCE Contents 1. Client Discovery Phase 5 2. QDB Direct Financing Application Preparation 7 3. Submit Application for Review & Approval 9 4. Financing Approval 11 5.
More informationManaging International Trade.
Managing International Trade. The most useful global currency is knowledge. Important foreign currency warning There is an important warning on the next page which you should read. Foreign currency warning
More informationA 2010 GLOBAL TRANSACTION BANKING HANDBOOK:
A 2010 GLOBAL TRANSACTION BANKING HANDBOOK: in association with: Platinum sponsor: Gold sponsor: Silver sponsor: www.financial-i.com TRADE & SUPPLY CHAIN FINANCE Honing in on efficiencies The financial
More informationBANK PAYMENT OBLIGATION: FINANCIAL INSTRUMENTS TO MANAGE RISK IN THE OPEN ACCOUNT TRADE
BANK PAYMENT OBLIGATION: FINANCIAL INSTRUMENTS TO MANAGE RISK IN THE OPEN ACCOUNT TRADE J.P. Morgan Michael Quinn, Managing Director, Global Trade Product Management Executive Qatar National Bank Imre
More informationDRAFT IMPROVING THE SMEs ACCESS TOTRADE FINANCE IN THE OIC MEMBER STATES
Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation (COMCEC) DRAFT IMPROVING THE SMEs ACCESS TOTRADE FINANCE IN THE OIC MEMBER STATES COMCEC COORDINATION
More informationSupply Chain Finance for Corporates
Supply Chain Finance for Corporates Managing risk, finance and processing efficiency in a multi-bank environment Webinar, 30 June 2011 Our SWIFT speakers today André Casterman Head of Cash, Trade and Supply
More informationReducing Risk Through Bank-Assisted Open Account
Reducing Risk Through Bank-Assisted Open Account Written by Bottomline Technologies and David Hennah of SWIFT This article was first published by GTNews Despite the recent credit crisis, globalisation
More informationJ. Gaspar: Adapted from Jeff Madura, International Financial Management. Slides by Yee-Tien (Ted) Fu
Chapter 19 Financing International Trade J. Gaspar: Adapted from Jeff Madura, International Financial Management 19. 1 Slides by Yee-Tien (Ted) Fu Merchandise Trade Merchandise trade, i.e., exports and
More informationHow To Make Money From An Open Account
Treasury Services Trade Finance and Supply Chain Update Presentation to CLACE XXVIII Latin American Conference on Foreign Trade June 3-5 June, 2012 John Hernandez Treasury Services john.hernandez@bnymellon.com
More informationCUSTOMER JOURNEY GUIDE Direct Finance
CUSTOMER JOURNEY GUIDE Direct Finance 1 Welcome to QDB When you visit QDB, the reception desk will direct you to our Advisory team who will guide you through your journey based on where you currently are:
More informationInternational Sales Finance Solutions
International Sales Finance Solutions Global Transaction Services Cash Management Trade Services and Finance Securities Services Fund Services International Sales Finance Solutions Financing Tools to Support
More informationTrade Services Service & Price Guide
Trade Services Service & Price Guide Version1: April-2014 Standard pricing applicable for Trade Services (applicable for Wholesale Banking / Transaction Banking / SME & Consumer Banking Clients of Standard
More informationSUPPLY CHAIN FINANCE : A new way for trade banks to strengthen customer relationships
White Paper SUPPLY CHAIN FINANCE : A new way for trade banks to strengthen customer relationships Business solutions through information technology TM Entire contents 2007 by CGI Group Inc. All rights
More informationFAQs Trade Finance. ecobank.com
FAQs Trade Finance ecobank.com TRADE FINANCE FAQS Q. What are the products used by banks in international trade? A. Cheques, transfers, bill of exchange, documentary bill, documentary collection, letter
More informationFORFAITING A USER'S GUIDE WHAT IT IS, WHO USES IT AND WHY?
FORFAITING A USER'S GUIDE WHAT IT IS, WHO USES IT AND WHY? By: John F Moran, Jr. Abstract Italian and West German exporters have long been familiar with Forfaiting and still provide the bulk of the market.
More informationthe beneficiary at sight or on a fixed future date.
1. Letter Of Credit An import Letter of Credit is an unconditional undertaking, given by a bank (the "Issuing Bank") at the request of their customer (the Applicant or Importer) to pay the Beneficiary
More informationPROFILE INDEX. Introduction 3. Key Definitions 4. Features & Benefits 5. Standard Operating Procedure 6. Service Process 7. Service Undertaking 8
COMPANY PROFILE PROFILE INDEX Introduction 3 Key Definitions 4 Features & Benefits 5 Standard Operating Procedure 6 Service Process 7 Service Undertaking 8 Contact Details 9 Trade Finance Glossary 10 Page
More informationCanada Export Requirements Incoterms
Canada Export Requirements Incoterms Topics of Discussion Canada export requirements Terms of sale Insurance Documentation Export Process Are there export restrictions? What are the import conditions?
More informationFORFAITING IMPROVE YOUR CASH FLOW & MITIGATE RISK - WHILE OFFERING YOUR CUSTOMERS EXTENDED PAYMENT TERMS
Financing International Sales using Forfaiting Presented by Gregory Bernardi LFA FORFAITING IMPROVE YOUR CASH FLOW & MITIGATE RISK - WHILE OFFERING YOUR CUSTOMERS EXTENDED PAYMENT TERMS 1 FORFAITING AGENDA
More informationOffshoring / Outsourcing Banks Trade Services
Offshoring / Outsourcing Banks Trade Services - Sainath Radhakrishnan, Head-FI Trade Outsourcing, ABN AMRO, London. Executive Summary Ever since offshoring and outsourcing in the services sector began
More informationGUIDE TO INTERNATIONAL PAYMENT METHODS. Making international trade accessible to every business
GUIDE TO INTERNATIONAL PAYMENT METHODS Making international trade accessible to every business 2 As the globe is becoming smaller and international trade is becoming easily accessible, the issue of moving
More informationAUDIT OF FOREIGN EXCHANGE TRANSACTIONS
AUDIT OF FOREIGN EXCHANGE TRANSACTIONS 1.00 INTRODUCTION : The Foreign Exchange Management Act (FEMA) was an act passed by Parliament in 1999 which replaced Foreign Exchange Regulation Act. The most important
More informationHow To Finance Export Finance In Canada
Export Finance Guide A Team Canada Inc Publication Overview The Team Canada Inc (TCI) Export Finance Guide is a complement to existing TCI publications and resources. Its purpose is helping Canadian entrepreneurs
More informationFlashcards for Chapter 6 Introduction to Working Capital Management [ ]
Flashcards for Chapter 6 Introduction to Working Capital Management [ ] [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract
More informationDiagnostic. Short term finance constraints in Turkey
Diagnostic Short term finance constraints in Turkey Short term finance instruments and methods Banks have long provided trade finance and working capital services processing information, managing documents,
More information2011 Meridian Partners Limited. Meridian Partners Trade Financing
Meridian Partners Trade Financing About Us Meridian Partners provides you with the legal requirements of a registered office address in Hong Kong, a corporate secretary, telephone, fax and mailing services.
More informationWant to start or grow your import/export business? Learn how from industry experts. View our training schedule. International Payment Methods
Want to start or grow your import/export business? Learn how from industry experts. View our training schedule International Payment Methods As the globe is becoming smaller and international trade is
More informationClosing the Trade & Supply Chain Finance Gap:
Closing the Trade & Supply Chain Finance Gap: Selected Observations ARTNeT Research Workshop Macau, China Alexander R. Malaket, CITP, President OPUS Advisory Services International Inc. Key Messages Trade
More informationGLOSSARY OF TRADE AND PAYMENT TERMS
GLOSSARY OF TRADE AND PAYMENT TERMS ACCEPTANCE: Under a Letter of Credit, an acceptance drawn on and accepted by a bank that thereby becomes primarily liable to pay on the maturity date. ACCOUNTS PAYABLE:
More informationTrade Finance and Services
Comptroller s Handbook A-TFS Safety and Soundness Capital Adequacy (C) Asset Quality (A) Management (M) Earnings (E) Liquidity (L) Sensitivity to Market Risk (S) Other Activities (O) Trade Finance and
More informationC&I LOAN EVALUATION UNDERWRITING GUIDELINES. A Whitepaper
C&I LOAN EVALUATION & UNDERWRITING A Whitepaper C&I Lending Commercial and Industrial, or C&I Lending, has long been a cornerstone product for many successful banking institutions. Also known as working
More informationMANAGING CREDIT RISK IN A VOLATILE MARKETPLACE
Export Forum 2015 October 14, 2015 MANAGING CREDIT RISK IN A VOLATILE MARKETPLACE Presented by: George Babeu, President One Source Risk Management and Funding, Inc. WHAT WE WILL DISCUSS Today s volatile
More informationDocumentary credits, collections and bank guarantees
Documentary credits, collections and bank guarantees Documentary credits, collections and bank guarantees This book is aimed primarily at import or export companies purchase department employees, CFOs,
More informationORIGINAL: English DATE: June 2001 E CARL DUISBERG GESELLSCHAFT e.v. WORLD INTELLECTUAL PROPERTY ORGANIZATION WORKSHOP ON INNOVATION SUPPORT SERVICES AND THEIR MANAGEMENT organized by the World Intellectual
More informationExploring Exports: Financing Your Export Sales
Exploring Exports: Financing Your Export Sales Presented by: Scott K. Hibbard, Vice President International Trade Finance February 9, 2012 Agenda Overview: Global Trade Trends Trade Cycle, Trade Risks,
More informationChapter 19. Financing International Trade. Lecture Outline
Chapter 19 Financing International Trade Lecture Outline Payment Methods for International Trade Prepayment Letters of Credit Drafts Consignment Open Account Trade Finance Methods Accounts Receivable Financing
More informationROYAL MALAYSIAN CUSTOMS GOODS AND SERVICES TAX GUIDE
ROYAL MALAYSIAN CUSTOMS GOODS AND SERVICES TAX GUIDE ON COMMERCIAL BANKING CONTENTS INTRODUCTION... 1 Overview of Goods and Services Tax (GST)... 1 OVERVIEW GENERAL OPERATIONS OF THE INDUSTRY... 1 GST
More informationThe Lee Kong Chian School of Business Academic Year 2015 /16 Term 1
The Lee Kong Chian School of Business Academic Year 2015 /16 Term 1 FNCE310 TRADE FINANCE Instructors Name : Jayesh Avlani / Cheng Yam San Title : Adjunct Faculty of Finance Email : jayeshavlani@smu.edu.sg
More informationTransport Insurance for International trade
Transport Insurance for International trade 1) International trade insurance indemnifies importers and exporters against various types of losses, including damage to goods in transit, products injuring
More information-SQA- SCOTTISH QUALIFICATIONS AUTHORITY HIGHER NATIONAL UNIT SPECIFICATION GENERAL INFORMATION -----------------------------------------
-SQA- SCOTTISH QUALIFICATIONS AUTHORITY HIGHER NATIONAL UNIT SPECIFICATION GENERAL INFORMATION -Unit Number- 6520606 -Superclass- -Title- AL INTERNATIONAL FINANCING -----------------------------------------
More informationA GuiDe to DoCumentArY Business. Documentary Credits and Collections.
A GuiDe to DoCumentArY Business. Documentary Credits and Collections. Contents. The Documentary Collection. Documentary collection process. 7 General information. 7 The collection order. 8 What you should
More informationGlobal Transaction Services
0 Global Transaction Services Cash Management Trade Services and Finance Securities Services Fund Services Unlocking the Benefits of Export Letters of Credit Phyllis Kai-Kee Director/Global Product Manager
More informationBank Payment Obligation Corporates Perspective
A new financial supply chain management tool: Bank Payment Obligation Corporates Perspective 10, June 2015 This year s topics include amongst others: What is a Bank Payment Obligation (BPO)? Benefits of
More informationR Routledge LEGAL ASPECTS OF TRADE FINANCE. Dr C Chatterjee LL.M (Cambridge), LL.M, Ph.D (London) Barrister. Taylor & Francis Croup
LEGAL ASPECTS OF TRADE FINANCE Dr C Chatterjee LL.M (Cambridge), LL.M, Ph.D (London) Barrister R Routledge Taylor & Francis Croup LONDON AND NEW YORK CONTENTS List of Cases xii 1 Chapter 1 Methods of Payment
More informationAn Introduction to the Financial Supply Chain. Mapping the processes and finding the opportunities
An Introduction to the Financial Supply Chain Mapping the processes and finding the opportunities Table of Contents Project definition Objectives Scope and approach Key concepts Supply chain definitions
More informationTrade Finance Guide. A Quick Reference for U.S. Exporters
Trade Finance Guide A Quick Reference for U.S. Exporters Table of Contents Introduction...1 Chapter 1: Methods of Payment in International Trade... 3 Chapter 2: Cash-in-Advance... 5 Chapter 3: Letters
More informationCERTIFIED TRADE FINANCE & BANKING Join Banks in Prestigious Designation
CERTIFIED TRADE FINANCE & BANKING Join Banks in Prestigious Designation ADVANCED STUDIES TRAINING COACHING - ASSIGNMENT Be the Top Professional in - Trade Finance & Banking Specialisation in : SWIPE YOUR
More informationRaise the anchor. FEATURE 4 March 2015. One of the most reliable growth stimuli for SMEs is value chain financing.
Raise the anchor FEATURE 4 March 2015 One of the most reliable growth stimuli for SMEs is value chain financing. Qamar Saleem, Martin Hommes and Aksinya Sorokina explain how this works and why it is good
More informationSupply Chain Finance
Supply Chain Finance Leveraging Modern Technology To Transform Innovative Vietnam Banking Services Gerald Huang Banking Vietnam 2015 Hanoi May 19, 2015 LOCAL BUSINESS ENVIRONMENT Retail Sales grew Services
More informationHow To Run A Global Trade Finance Bank With Cgi Trade360
Get ahead of the curve in global trade finance When your customer says, I want my bank to Can your bank meet the need? We have the ability to turn to CGI and ask them to modify the solution or to roll
More informationFusionBanking Trade Innovation Software overview. Operational excellence in trade finance. Trade automation to transform service
FusionBanking Trade Innovation Software overview Operational excellence in trade finance Trade automation to transform service To ensure continued success in Asia and to support our domestic clients more
More informationACI Global Trade Manager
PRODUCT LINE FLYER ACI Global Trade Manager Links all transaction participants (buyer, seller, banks and third parties) through a common collaborative platform Shortens the cash cycle for the buyer and
More informationBy using a documentary credit, an exporter is certain of receiving payment at the agreed time, and of having a source of finance.
Documentary Credits Security of settlement through documentary credit With the exporter's interest in optimising security for the payments he is to receive, especially those from the faraway markets, interest
More informationFinancial Instruments
There are two basic forms of Letters of Credit: Standby (SBLC) and Documentary (DLC). Financial Instruments Documentary Letters of Credit can be either Revocable or Irrevocable, although the first is extremely
More informationMODULE 2 PRICING, FINANCING, PAYMENT METHODS DRAFTED BY: MYCCI BULGARIA
MODULE 2 PRICING, FINANCING, PAYMENT METHODS DRAFTED BY: MYCCI BULGARIA NOVEMBER 2012 Contents PRICING, FINANCING, PAYMENT METHODS...2 INTRODUCTORY NOTES:...2 ABSTRACT:...2 PRICING...3 Price, pricing &
More informationATOMEX-Europe 2013. 8-9 October 2013, Brno, Czech Republic
ATOMEX-Europe 2013 8-9 October 2013, Brno, Czech Republic VTB today VTB is a backbone Russian bank, which has built an international financial group. VTB Group possesses a unique international network
More informationProcure-to-Pay Best Practices
ITFMA Conference Procure-to-Pay Best Practices Integrating P2P Best Practices with Technology Chris Evanoff: Principal, Soltec, Inc. 1 Presentation Outline Introduction and Background Procure-to-Pay Cycle
More informationWorkshop Agenda Certified Commodities Analyst OBJECTIVE KEY AREAS FOCUS WHO SHOULD ATTEND. About your trainer UNIQUE MARKETS SPOT COMPLEX
markets are one of the more diverse markets in the capital markets arena and feature in investment portfolios in an increasing manner although traditionally they are traded in physicals taking in the whole
More informationTo enable highly rated corporate borrowers to diversify their sources of short term borrowings.
COMMERCIAL PAPER (CP) CP is an unsecured money market instrument issued in the form of a Promissory Note and was introduced in 1990. Can now be issued in Dematerialised form. To enable highly rated corporate
More informationEmirates NBD Trade Finance Tariff Effective 22.06.2011 IMPORTS
Emirates NBD Trade Finance Tariff Effective 22.06.2011 IMPORTS DC Issuance Commission Standard Irrevocable DC First AED 100,000 0.125 % per month(minimum 3 months) Remaining DC value 0.0625 % per month(minimum
More informationCHAPTER 20 INTERNATIONAL TRADE FINANCE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS
CHAPTER 20 INTERNATIONAL TRADE FINANCE SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. Discuss some of the reasons why international trade is more difficult and risky
More informationFACTORING AND FORFEITING. the faster way to get your money
FACTORING AND FORFEITING the faster way to get your money 3 CONTENTS FACTORING 4 DOMESTIC FACTORING 5 1. Supplier s factoring (Reverse factoring) 5 2. Selective factoring with right of recourse 6 3. Individual
More informationBill Discounting. Exporter. Importer BANKING AND TRADE FINANCE TUTORIAL. Importer s Bank. Exporters Bank INDIA FOREX ADVISORS.
Bill Discounting While discounting a bill, the Bank purchases the bill receivable to the Exporter (i.e. Bill of Exchange or Promissory Note) before its due date and credits the value of the bill to the
More informationLetters of Credit. A Guide to Letters of Credit
Letters of Credit A Guide to Letters of Credit These manuals are created as resource guides for members of Saskatchewan Trade and Export Partnership (STEP). For more information on these manuals please
More informationTrade finance. Finance alternatives
6 Trade finance Finance alternatives To be able to give or to arrange finance as part of an export transaction is increasingly important, both as a sales argument and to meet competition from other suppliers.
More informationHow To Pay For International Trade
A FirstBank Presentation PAYMENTS SYSTEM IN NIGERIAN INTERNATIONAL TRADE An Overview Presented by the Group Managing Director. 26 November 2012. Introduction Payment Systems To succeed in today s global
More informationYour Logo Here Creative Ways to Finance Your Working Capital Needs. February 22, 2012 2/24/2012
Your Logo Here Creative Ways to Finance Your Working Capital Needs February 22, 2012 1 Trade Finance Tools Classic Trade Products: Letters Of Credit, Collections, Open Account Enhanced Trade Products:
More informationRAKfinance. Liability Certificate AED 500. Loan Statement Charges AED 500. Part Settlement of Loan
RAKfinance Service and Price Guide with effect from 05-08-2015 Loan Processing Fee 2.50% of the loan amount* Liability Certificate AED 500 Loan Statement Charges AED 500 Early Settlement of Loan Business
More informationAppendix 16 Trade Finance
Appendix 16 Trade Finance Trade finance is the term used to describe the means by which companies finance and secure payment for the provision of goods and services. It is usually used to describe international
More informationChapter16. Managing Short-Term Liabilities (Financing)
Chapter16 Managing Short-Term Liabilities (Financing) 1 Learning Outcomes Chapter 16 Describe the characteristics of the various sources of short-term credit, including Accruals trade credit bank loans
More information11/11. Trade Services Service & Price Guide
11/11 Trade Services Service & Price Guide Standard Pricing applicable for Trade Services (applicable for Wholesale Banking / Transaction Banking / SME & Consumer Banking Clients of Standard Chartered
More informationBank Payment Obligations (BPOs) Basics for Corporates
Bank Payment Obligations (BPOs) Basics for Corporates What you need to know in order to start replacing Standby Letters of Credit and/or Documentary Letters of Credit (LCs) with the BPO or BPO-Plus process
More informationManaging Credit Risk in International Trade
Risk in Overview Chapter 15 Managing Credit Risk in Overview Risk in Overview Simple solutions and their risks bills Payments: Credit: The Letter of Credit Advising/Confirming a L/C Factoring Credit insurance
More informationTrade Finance : SMEs Emerging Needs
ASIA-PACIFIC TRADE FACILITATION FORUM 2013 [Session 2: Integrating SMEs into international supply chains through trade finance] Beijing, China, 10-11 September 2013 Trade Finance : SMEs Emerging Needs
More information