Structuring Working Capital Lines
About This Course
• Outline the risks of various methods of payments in international trade transactions
• Understand the role of the bank and related trade finance products under various methods of payment
• Understand the regulatory capital requirements and its impact on commercial lending and trade finance
• Understand the components of a company’s working capital cycle
• Determine the working capital requirements and trade finance facilities needed by a company
• Learn how to structure appropriate short term import and export lines including FX products
• Know the key differences in funding options such as factoring and traditional bank lines
• Understand the differences between bankers guarantees and standby letters of credit
What You'll Learn
• Open account
• Documentary collection
• Documentary credit
Bank’s role under various methods of payment
• Document processing
• Risk mitigation
• Financing
Regulatory capital requirements and benefits of structuring appropriate credit lines
• Overview of the Basel Accord
• Impact of capital adequacy requirements on commercial lending and trade finance
Understanding the components of a company’s working capital cycle
• Key drivers of cash needs
• Determining a company’s working capital requirement
Structuring appropriate short-term credit lines
• Import lines
• Export lines
• General working capital lines
• FX Lines for hedging currency risks
• Bank guarantee lines to support project related requirements
Differences between factoring vs traditional bank lines.
Banker’s guarantee vs standby letter of credit
Entry Requirements
Participants should preferably have tertiary qualifications with relevant experience in corporate lending.