When engaging in international trade, it is crucial for buyers and sellers to carefully select payment methods that are both appropriate and secure. Sellers may prefer advance payments, while buyers may opt for the open account option. The use of payment methods such as documentary collections and Letters of Credit require different considerations to be considered. Therefore, importers and exporters need to understand the risks and challenges associated with the various payment options.
In this seminar, you will learn about the various trade finance tools and techniques available to help you manage your risks, optimize your cash flow, and unlock new growth opportunities. You will gain insights and best practices on how to choose the right trade finance approach for your business needs, whether you are importing or exporting goods, or investing in new projects.
Course Outline:
1. Recognize the risks of various payment options to buyers and sellers, and how to minimize or avoid the risks associated with trade transactions.
2. Study the difference when applying Documentary collections and Letters of Credit. Identify the difference between the bank charges of these payment options and recognize the relevant banking documents needed for both payment options for international trade transactions.
3. On consignment sale is a common payment option in international trade. How does it differ from the currently popular Vendor Managed Inventory (VMI)? What are the areas buyers and sellers should pay attention to?
4. Identify the measures that could mitigate payment risks arising from open accounts or prepayment options
5. Case sharing
Learning Outcomes:
By the end of the session, you will:
- Recognize the different methods of trade settlement
- Learn about the risks associated with various settlement methods
- Understanding the key considerations when applying VMI management
Who Should Attend:
- This course is suitable for people engaging in purchasing, sales and marketing, logistics/shipping, finance/accounting field.
This workshop will be conducted in Cantonese. Please refer to the Chinese version for details. |