Trade Finance
You learn how an export order gets paid, what it costs to wait for the money, and the instruments that stand between a shipment and a bad debt.
After this track you can
You can read a letter of credit for the terms that will refuse your documents, price what a payment term actually costs you in working capital, and choose an instrument that matches the risk you are carrying.
7 courses · 13 h 30 min
- 13.1How an Export Order Gets PaidFoundation6 lessons · 1 h 40 minYou follow one export order of chore jackets from the fabric deposit until the money is in the account, and you price it three ways: under a sight credit, under a documents-against-payment collection, and on open account. Same FOB, three different prices, and the gap between the cheapest and the dearest is a quarter of the order's whole margin.
- 13.2Letters of Credit in PracticePractitioner7 lessons · 2 h 30 minYou follow one documentary credit from the day it arrives to the day it is paid. You see the fields that are really a specification, and the amendment that is the only fix. You price four discrepancies on a shipment nobody complained about. You read confirmation as a product with a price. And you get an honest reading of what a credit does not cover.
- 13.3Financing the Materials: Back-to-Back and Transferable LCPractitioner6 lessons · 1 h 50 minThe mill wants paying in April. The buyer pays at the end of August. You follow one export order through that gap. You see what the wait costs, what a back-to-back credit costs, and what a transfer costs. You see why the two are not alternatives. And you look at the cheaper routes that are usually better.
- 13.4Working Capital and the Cash CyclePractitioner6 lessons · 2 hYou follow one export order from the fabric deposit to the money landing 193 days later, and you price it day by day. You see what the calendar costs, and why the better margin can be the worse order. You see why a good year is the dangerous one. And you rank four sources of cash against one real shortfall.
- 13.5Discounting, Factoring and Credit InsuranceAdvanced6 lessons · 1 h 40 minYou take three products the trade calls by each other's names, and price them on one export programme. You see what a discount really costs once the day count and the fees are in it. You see what recourse and non-recourse are worth in money. And you see what a credit insurer covers, what it excludes, and what it quietly refuses to pay.
- 13.6Foreign Exchange and Pricing RiskAdvanced6 lessons · 1 h 50 minYou see why a correctly costed export order loses money without anybody making a mistake. You find where the currency risk really starts, how to write it down and net it off, and which currency your profit is actually measured in. And you see what a forward, an option, and a contract clause each do, and each cost, on one real order.
- 13.7Bank Guarantees, Bonds and Standby LCsPractitioner7 lessons · 2 hYou take the instruments that pay when something goes wrong. One state uniform contract carries four bonds. You learn what each one secures, what a demand must say, and what the whole package costs per jacket. And you learn the ten lines of drafting that decide whether a bad month becomes an expensive year.
Track exam
12 questions drawn from a larger bank, across the courses in this track, passed at 70%. 3 attempts, then it locks for 7 days. It is worth finishing the courses first.
Sit the track exam