Together with
and
Providing Education in Credit Risk Mitigation and Receivables Finance
Cordially invites you to attend 3 one-day sessions covering
 Credit Risks and Risk Mitigation Techniques
 Export Letters of Credit
 Alternatives for Financing the Sale of Goods
March 9, 10, and 11, 2016 in Los Angeles
CDCS holders: Approved for 12 PDUs by BAFT
RGCP and CGCE holders: Approved for 1.8 CEUs by the ICTF
CPAs: Complies with requirements for 21 CPE hours of Business Management
education in Michigan
Additional continuing education approvals pending (tell us your certification)
Wednesday, March 9: Credit Risks and Risk Mitigation Techniques
Review the categories of credit risk incurred when selling to customers inside the U.S. and the
additional risks involved when selling overseas and then learn how various tools are designed to
manage these risks. This session compares commercial and standby letters of credit, standard and
silent letter of credit confirmations, bank and corporate guarantees, forfaiting, factoring, credit
insurance, credit derivatives, and foreign exchange contracts from the perspective of what risks
each one covers. Participants learn to identify risks and the appropriate tools for managing those
risks.
Objective #1:
Objective #2:
Objective #3:
Objective #4:
Identify payment risks in domestic and international commercial transactions
Understand the risks that are and are not covered by various risk mitigation
techniques
Match risk mitigation techniques with risks inherent to transactions you will face
Craft an international credit policy suitable to your company's risk appetite and
competitive position
Highlights:
» Credit Risks: Political, Economic, Commercial, FX
» The Spectrum of Credit/Payment Terms: Cash in Advance to Open Account
» Payment Flows: How Money Moves Between Banks
» Incoterms 2010
» Comparing Credit Risk Protection Mechanisms
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unconfirmed L/Cs
confirmed L/Cs
standby L/Cs
independent/demand guarantees
accessory/contract guarantees
sight drafts, “documents against payment”
avalized drafts and forfaiting
factoring
non-recourse sale of receivables
credit insurance
credit derivatives
foreign currency forwards & options
For a full outline of Credit Risks and Risk Mitigation Techniques, visit
http://www.gtrisk.com/Tools_for_Credit_Risk_Mitigation.html
Thursday, March 10: Export Letters of Credit
Letters of credit used in export sales (commercial L/Cs) are quite different from those credit
managers are accustomed to using in domestic sales (standby L/Cs). The biggest difference is that
export L/Cs are intended to be drawn on and thereby serve as the means of payment for goods
shipped. The "rub" is that they tend to call for more documents, many of which are prepared by
third parties. Export L/Cs are designed to serve as a reliable means of credit assurance and also
an efficient means of payment. Yet 75% of the time the documents are noncompliant and it can
take 3 to 6 weeks to get paid on a "sight" L/C. This session will provide participants with a
detailed review of the mechanics of export L/Cs and how they can be structured to assure fast
payment. The discussion will then focus on the points at which the process tends to break
down. Participants will learn how to get paid in one or two days, even when documents are
discrepant, how to avoid discrepancies (and non-payment), and how and when to use "silent
confirmations.”
Highlights:
» A Detailed Look at How Letters of Credit Work
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advising and nominated banks
what “negotiation” actually means
“silent L/C confirmation”
assignment of L/C proceeds
transferable L/Cs
The UCP600
The SWIFT MT700 Format
“Usance” Letters of Credit and Discount Charges
Examining L/C Documents/Common Discrepancies
How to Obtain Immediate Payment under Unconfirmed L/Cs
Taking Advantage of “Freely Negotiable” L/Cs
Creating an L/C Instructions Form
For a full outline of Export Letters of Credit, visit
http://www.gtrisk.com/Export_Letters_of_Credit.html
Friday, March 11: Alternatives for Financing the Sale of Goods
Learn how to better negotiate and structure commercial sales into domestic and foreign markets in
order to simultaneously increase sales, limit risks, and improve cash flow. Examine tools that
enable otherwise intolerable transactions by limiting payment and performance risks and tapping
funding sources that are specifically designed for export sales. This session explains the motives
of the seller, the buyer, and the seller's bank and then compares structures in order that attendees
can craft an appropriate structure for each transaction they encounter.
Objective #1: Differentiate among various trade-facilitating and credit-enhancing tools (e.g.
commercial & standby letters of credit, factoring, forfaiting, credit insurance)
Objective #2: Understand how Treasury/Credit can be an integral partner and resource to Sales
and Marketing by providing buyer financing
Objective #3: Learn what products and services to look for from the bank that finances your
domestic and international sales and how to choose the right bank for your
company
Objective #4: Use tools that simultaneously provide domestic and foreign customers with more
competitive payment terms while improving cash flow to the company and
reducing risks
Highlights:
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Security Interest Laws
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“True Sale” Accounting Standards
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Negotiable Instruments Law
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Using Credit Insurance
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Financing Documentary Collections
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Financing Letters of Credit
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Financing Open Account Sales
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Exim- and SBA-Guaranteed Working Capital Loans (Pre-export)
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Exim-Guaranteed and Privately Insured Post-Export Loans
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Purchase Order Financing (Including Back-to-Back L/Cs)
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Securitization of Receivables
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Sources of Export Funding
For a full outline of Alternatives for Financing the Sale of Goods, visit
http://www.gtrisk.com/financing_export_sales.html
Instructor
Walter (Buddy) Baker brings more than 30 years of experience in
international trade finance to these presentations. His
professional experience includes stints with Atradius Trade
Credit Insurance, ABN AMRO Bank, Bank of America,
Wachovia Bank, and The First National Bank of Chicago.
Mr. Baker is a recognized expert in trade finance and author of
numerous magazine articles and the books Users’ Handbook to
Documentary Credits under UCP600, Documentary Payments &
Short-Term Trade Finance, and The Regulatory Environment of
Letters of Credit and Trade Finance. He owns the consulting firm
Global Trade Risk Management Strategies, which specializes in
educational training, and makes frequent presentations for
national associations of exporters, importers, bankers, and
lawyers. As a member of the National Letter of Credit
Committee of the International Financial Services Association,
the Advisory Council of the Institute for International Banking
Law and Practice, and the Council for International Standby
Practices, Mr. Baker is actively involved in establishing national
and worldwide standard practices for LCs. He participated in the
most recent revision of the Uniform Customs and Practice for
Documentary Credits (referred to as “UCP600”), contributed to
the creation of the official ICC guide for examining letter of
credit documents, called the International Standard Banking
Practices for the Examination of Documents under Documentary
Credits, and served on the drafting committees for the
International Standby Practices (“ISP98”) and Article 5 of the
Uniform Commercial Code. He is also on the Board of Directors
of the Association of International Credit and Trade Finance
Professionals (“ICTF”), a multinational association of export
credit managers.
Buddy earned his undergraduate degree at Yale University and
his MBA at Northwestern. He can be reached at (847) 830-3038
or buddy.baker@gtrisk.com.
Registration Form
E-mail your completed form to continuing.education@gtrisk.com or pay by check and register by
mail:
Global Trade Risk Management Strategies LLC
414 Winnetka Ave.
Winnetka, IL 60093-4240
Cost: $495 per session, $1,400 for all three
Early Bird Rate: Register by February 15 - $445 per session, $1,250 for all three
Location: TBD
Sign me up for the following sessions:
___ Wednesday, March 9: Credit Risks and Risk Mitigation Techniques
___ Thursday, March 10: Export Letters of Credit
___ Friday, March 11: Alternatives for Financing the Sale of Goods
Name:
Company:
Address:
City:
Phone:
State:
Zip:
Fax:
E-Mail:
Credit Card #
Exp.:
/
Security #
For additional information, call (847) 830-3038 or e-mail info@gtrisk.com. For additional
information on Global Trade Risk Management Strategies, visit our website
at www.gtrisk.com.