Working Capital is generally referred to as the capital required to support day to day operations of a company. Sometimes firms are forced to restrict their operations due to their inability to meet short-term financial obligations. Therefore, it is critical that a firm manages its working capital well. Organisations may have invested heavily in fixed assets but may still struggle to meet the operating expenses on a day to day basis in absence of sufficient working capital funds.
Target Audience: Corporate Executives and Bankers dealing in Imports and Exports.
Course Objective: To accustom participants with Trade Finance and its importance in domestic and foreign trade.

Day 1: The Importance of Foreign Trade

Settlement Methods in International Trade

Incoterms 2010 – the 11 terms explained

LC Mechanism – Parties involved - Issue and utilisation –

     -    Advantages and disadvantages for exporters and importers – Costs associated with LCs

Different Types of Letters of Credit explained

Bank Guarantees – Different Types explained

Documents used in International Trade explained

Overview of UCP 600 and ISBP 745 -operations of and LC

Collection Documents – URC 522



Day 2:

LC Opening process in the bank – checklist for Exporters and importers

SWIFT formats used by banks in LCs

Consequences of discrepant documents

Dispute Resolution Mechanism for issues relating to LCs

Bills directly received and sent by exporters

Funding options available for exporters – Reshipment Finance

Funding options continued……Post shipment finance in Rs. and in Foreign Currencies

FEMA on Finance to Manufacture Exporters and Project Exporters from banks

Buyers’ Credit and Sellers’ Credit

Factoring and Forfeiting

Hedging exposure to foreign exchange – an Introduction

Effect of Trade transactions on the borrowers’ other accounts

Role of Technology in Trade

            Initiation of transactions by Corporates

            STP facilities for inward remittances

            Generation of MT103, MT700, MT707 etc., by customer

            Blockchain – Role and status