Course objective.

• Negotiate the most favorable Letter of Credit terms for your business
• Select the most suitable banks to handle your Letter of Credit documents
• Accurately factor the costs into your selling price
• minimize the need for costly amendments
• Prepare Letter of Credit documents which comply with the most challenging of terms
• Examine and understand the terms and conditions in a Letter of Credit 
• Avoid and resolve discrepancies when handling documents called for Letter of
• Understand specialized areas Letter of Credit
• Understand the uses, and risks of Letter of Credit

Who Can Benefit?

• Financial and Accounting staff in Credit Management

Course Outline

• What is a Letter of Credit?
• Overview of Letters of Credit (LC)
• Role of banks in Letters of Credit
• How Letters of Credit work
• Opening a Letters of Credit
•  Documentary Collections & Bills of Exchange
• Reviewing an export  Letters of Credit
• Reviewing documents presented under an export  Letters of Credit
• Understanding the jargon - L/C terms and expressions
• How to request a workable Letter of Credit from your customer
• Confirmed Letters of Credit - why use them and what are the cost implications?
•  Using L/Cs to decrease DSO (days sales outstanding)
• Letter of Credit bank charges - calculating and minimizing costs!
• How to deal with the banks - handy hints and tips
•  Common problems and discrepancies... and how to avoid them
•  Understanding the rules
• Techniques for preparing and presenting documents to the bank
• Checking the documents - what the bank is looking for!
• Discrepancies - what to do if things go wrong
• Understanding shipping terms in relations to Letters of Credit
• Uniform customs and practice for documentary credits
• Letter of Credit examples and exercises

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