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ITS-03-FIT-007 Factoring Fundamentals
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The main objective of this Learning Unit is to understand how Factoring operates. Detailed Topic Listing as follows:
LU FIT 007 Factoring Fundamentals
1. INTRODUCTION TO
FACTORING
1.1 The Factoring Division
1.2 Factoring or Invoice Purchase
Procedures
1.3 Initial Procedures
1.4 Mechanics of Processing a Client
Order
2. THE FACTORING
AGREEMENT
2.1 The Factor's Discretion
2.2 Fees
2.3 Termination
2.4 Personal Guarantee
3. The Contract
3.1 The Contract - Warranties
3.2 Purchase All Acceptable
Accounts by Factor
3.3 Prior Approval of Sales
3.4 Notice of Assigned Invoices
to appear on all Invoices
3.5 Purchase Price and Margin
3.6 Authorization to the Factor
for Charges and Obligations
3.7 Procedures for approved
account invoices
3.8 Reserve of Facial amounts of
invoices over finance provided
3.9 Receipt of Goods without
Dispute
3.10 Credit Terms
3.11 Solvency and law provisions
Further Reading
1 - UNDROIT Convention on
International Factoring
2 - Factoring - A Tool for Trade
Financing
3 - Introduction to International
Factoring and Project Finance
4 - Freight Factoring
5 - Factoring : A Better
Alternative
6 - Factoring and the Firm Value
Forum Assignment
End of Unit |
eBSI Export Academy
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ITS-03-FIT-008 - Export Credit Agency Finance
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You will become familiar with the roll of the Export Credit Agency, ECA, Supplier Credits, Buyer Credits and gain an understanding of the concept of Warehouse Financing. Detailed Topic Listing as follows:
LU FIT 008. ECA and
Warehouse Finance
1. ECA BASED
FINANCING
1.1 Medium to Long Term Financing
1.2 Market Characteristics
1.3 Long-Term Financing Needs
1.4 Participants in the Market
1.5 Export Credit Agencies
1.6 Export Credit Agencies -
Protections
2. SUPPLIER CREDITS
2.1 Supplier Credits (continued)
2.2 Mechanics of the Supplier
Credit
2.3 Advantages of Supplier Credit
2.4 Disadvantages of Supplier
Credit
2.5 Players and Relationships in
Supplier Credit
2.6 Commitment, Draw-down, and
Payback in Supplier Credit
3. BUYER CREDITS
3.1 Mechanics of the Buyer Credit
3.2 Advantages and Disadvantages
of Buyer Credit
3.3 Players and Relationships in
the Buyer Credit
3.4 Commitment, Draw-down, and
Payback in a Buyer Credit
3.5 Buyer Credit (Refinancing)
3.6 Comparison: Supplier and
Buyer Credits
3.7 Bank Earnings and Fees
3.8 OECD Consensus or Arrangement
3.9 Benefits to Banks
3.10 Export Credit Insurance and
the Berne Union
3.11 Benefits of Export Credit
Insurance
3.12 Examples of Main ECA
Providers and their Mission Statements
4. WAREHOUSE
FINANCE
Further Reading
1 - OECD Consensus - Arrangement
on Officially Supported Export Credits
2 - Disciplining Trade Finance -
the OECD Export Credit Arrangement
3 - Export Credit Guarantees,
Moral Hazard and Exports Quality
4 - Testing the Trade Credit and
Trade Link:
Evidence from Data on Export
Credit Insurance
5 - Public Export Guarantees and
Foreign Trade Structure
Forum Assignment
End of Unit |
eBSI Export Academy
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ITS-03-FIT-009 - Structured Commodity Trade Finance
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The main objective of this Learning Unit is to understand the functioning of Letters of Indemnity (LOI) and fundamentals of Asset Based Lending. Detailed Topic Listing as follows:
LU FIT 009 Commodity
Trade Finance
1 STRUCTURED TRADE
FINANCE
2 COMMODITY TRADE
FINANCE
2.1 Commodities and Trade
2.2 What Commodities can be financed?
2.3 Commodity Trade Finance - The
Players
2.4 Commodity Finance and Risk/Mitigation
3. LETTERS OF
INDEMNITY
3.1 Letters of Indemnity
3.2 Letters of Indemnity - Other
Purposes
3.3 Working with LOIs in favor of
the Carrier
3.4 Things to consider when
working with LOIs
4. COLLATERAL
CONTROL FOR TRADE FINANCE
4.1 Collateral Control for Trade
Financing Techniques
4.1.1
Repayment Seniority
4.1.2
Collateral Protection
4.2 Unsecured vs. Secured Lending
4.3 Establishing Collateral
Values
4.3.1
Establishing Net Realizable Value ("NRV")
4.4 Accounts Receivable
4.5 A Correct Receivable
4.6 Inventory
4.7 Inventory Insurance
4.8 Advance Rates
4.8.1 Advance
Rates for Inventory
4.9 Collateral Control
4.10 The Bill of Lading
Further Reading
1 - The Economics of Commodity
Trading Firms
2 - Commodity Finance Market
Report 2014
3 - Trade Finance Developments
and Issues
4 - Commodities as Collateral
5 - Structured Financing
Techniques - Oil and Gas
6 - Commodity Finance Fraud
7 - Commodity Trade and
International Risk Sharing
Forum Assignment
End of Unit |
eBSI Export Academy
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ITS-03-FIT-010 - Trade Finance Fraud Prevention
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In this unit you will learn how to identify fraud schemes and how to prevent them from damaging your business. Detailed Topic Listing as follows:
LU FIT 010 Trade
Finance Fraud Identification and Prevention
1. Specifics of
International Trade Finance Fraud
1.1 Definition of Trade Finance
Fraud
2. Letters of
Credit and UCP 600
2.1 Article 7 Issuing Bank
Undertaking
2.2 Article 12 b. Nomination
2.3 Veracity of Documents
2.4 Acting in Good Faith
2.5 Entitlement to Reimbursement
2.6 Case History - Fake
Inspection Certificate Presented
3. Bonds &
Guarantees in International Trade
3.1 Definition of a
Bond/Guarantee
3.2 Reasons for Requiring a Guarantee
3.3 Issuers of Guarantees
3.4 Direct / Indirect Guarantees
3.5 Categories of Bonds or
Guarantees
3.5.1 Customer
Implications re. Issued Bonds and Guarantees
3.6 Banks Consideration when
Issuing a Demand Guarantee
3.7.1 Wording
in Bonds/Guarantees Issued by a Bank
3.8 The Guarantee and the
Contract
3.9 Standby Letter of Credit
3.10 Guarantees, Standby LCs
& Fraud - Example Scenarios
4. The Bank and Customer Relationship
5. Trade Finance Fraud Prevention
5.1 The Occurrence of Letter of
Credit Fraud
5.2 User of Trusted Third Parties
5.3 Highly Complex Transactions
to Cause Confusion
5.4 Authentication of Documents
5.5 Money Laundering
5.6 Overcoming inadequate AML
Legislation
5.7 The use of technology to
avoid trade finance fraud
6. LC Independence
Principle & Fraud Exception
Further Reading
1 - A Comparative Analysis of the
Standard of Fraud Required under the Fraud Rule in LC Law
2 - Preventing Letter of Credit
Fraud
3 - The Fraud Exception in LCs :
A Global Analysis
4 - Money Laundering and
Financial Crimes Caribbean
5 - Documentary Credits in
International Transactions with a special focus on the Fraud Rule
6 - International Trade Fraud
Online Forum Access
End of Unit |
eBSI Export Academy
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