A 3-day course giving a practical insight into the financing of open account trade. The course will cover the key receivables and payables financing products, their use and operation and the latest innovation and market developments.
The risks encountered by sellers, buyers and banks in open account transactions will be discussed together with the key corporate drivers which underpin the need for financing and risk mitigation on open account trade transactions. The course will also demonstrate how open account trade financing solutions optimise the working capital requirements of corporates.
The course focuses on the identification, evaluation and mitigation of risk, and the structuring of open account trade finance transactions to establish and secure the means of repayment.
Emphasis is placed upon risk assessment, problem solving techniques and deal structuring, through a clear understanding of the trade cycle. Great attention is paid to the effective and appropriate use of open account financing techniques in meeting the customer’s needs, whilst satisfying a bank’s requirement for controlled lending and credit support
The delegates will practice the structuring of receivable and payable financing solutions mitigating risk for the bank, seller and buyer and facilitating the optimum working capital solution for the corporate
The course uses extensive case studies and exercises to develop the understanding of delegates in a structured, practical and engaging way across a range of scenarios on the identification of risk, risk mitigation, structuring techniques and providing optimal solution framing for the corporate.
By the end of this course the delegates will be able to:
Identify key corporate drivers and satisfy these through the use of receivables and payables finance
Appreciate the importance of the underlying commercial contract and Incoterms® when financing open account trade
Gather information to thoroughly assess and evaluate an open account trade proposition
Undertake effective risk analysis of open account trade transactions
Construct a trade cycle time line to evaluate type, amount and duration of trade finance
Describe the key receivables and payables solutions and when they should be used
Structure open account financing transactions to mitigate risk for the corporate and the bank and optimise working capital
Be aware of the latest market trends and developments in open account trade financing
Trade and risk; the risks associated with open account trade will be highlighted and how these risks can be mitigated. The fundamental importance of the terms of the commercial contract and the relevance of the Incoterms® rules will be discussed.
Trade solutions; a detailed examination of receivables and payables finance will be provided. Each will be described in terms of its use, operation, risk profile and working capital optimisation through presentational slides, diagrams and examples. Key aspects of structuring and risk mitigation will be highlighted.
Case studies; these will provide an opportunity for the delegates to identify and consider the key working capital needs of the corporate, identify risk and structure the transaction in order to mitigate risk, optimise working capital for the corporate and establish an identifiable and reliable source of repayment for a bank.
Each delegate will receive a workbook containing the presentational slides and supporting material