Methods of payment in international trade course to help importers and exporters succeed in the global marketplace and win sales against overseas competition. Get paid in full and on time for each export sale by knowing and using the appropriate payment method to minimize payment risk while meeting the needs of your customers.
By learning the appropriate payment methods, delegates will also be enabled to offer clients more attractive sales terms supported by the appropriate payment method, understand the necessary documentation, and comply with the requirements of each method of payment for international trade to process smooth and trouble free international trade transactions every time!
- Identify the different methods of payment used in international trade.
- Four main methods of payment available to exporters and importers
- Payment in advance: money upfront, payment assured
- Open account: trust, convenience, simple to operate
- Documentary Collections: payment through bank, supporting transport documents needed for payment.
- Letters of Credit: payment assured through banks on presentation of documents specified in L/C terms and full compliance with terms.
- Advantages and disadvantages of the four different methods of payment for an exporter.
- Payment in advance
- Open account
- Documentary Collections
- Letters of Credit
- Dealing with the uncertainty of foreign currency transactions. (2 & 2)
- Spot rates – accept payment (or make payment if importing) in currency using the rate quoted by the bank on the day of payment
- Forward contracts – to mitigate uncertainty and know how much sterling you will receive (or pay out if importing) pre-book the rate in advance with your bank of currency provider.
- Currency accounts – hold funds in a currency- useful if you receive and make a lot of payments in the same currency. Also, you can hold funds in the currency until the rate becomes more favourable.
- Currency options – pre-book your ideal or ‘strike’ rate with your bank for a premium/fee. On the day of payment, you can use the rate pre-booked or choose to use the prevailing rate on the day if it is better for you.
- Identify and understand the necessary documentation for each method of payment.
- Shipping documents for payment in advance terms
- Required documents to the buyer in an open account transaction.
- Requested shipping documents under a letter of credit transaction
- Ascertain what documents their customer requires
- Additional documents that may be required to support the invoice, packing list and transport documents: Insurance certificate, Pre-shipment inspection certificate, Packing list, Draft, Certificate of conformity, Certificate of origin, Certificate of quality
- Be able to comply with the requirements of different methods of payment#
- Arrange the four methods of payment in order staring with the most secure method for the exporter to the least secure.
Suitable for all staff needing a clear understanding of the procedures required for goods bought on documentary credit terms. Knowledge and understanding is reinforced through the use of exercises and detailed checklists. Essential learning for accounts, and purchasing teams..
This course is an excellent refresher for Accounts, Export Administration, Shipping, Export Sales Administration, Logistics, Dispatch, Purchasing, Documentation Personnel
This methods of payment in international trade training counts as 1 credit toward the 6-credit BCC Foundational Award in International Trade (see information below). Other international trade organisations are currently offering this identical course for £99 or £149 per delegate – our price to members is £169 and to non-members £199. Lunch and refreshments will be provided.
About the BCC Foundation Award:
The BCC (British Chambers of Commerce) has identified a curriculum of level 2 (NVQ terminology) courses which form the basis of a starting point for company employees to effectively support their employer’s importing/exporting practices. The courses are the initial and central component of the new British Chambers National Trade Training curriculum which will be accredited by BCC and delivered by the Accredited Chambers and their professional registered Trainers across the UK.
Each BCC accredited course includes the quality, assessment and training processes developed over a number of years, which underpins the delivery of the BCC national Export Documentation service
Qualifying Courses Count for 1 Credit and Include:
- Introduction To Exporting
- Exporting Documentation
- Customs Procedures & Documentation
- Importing Procedures
- How to Use Agents & Distributors
- Preference Rules of Origin
- Methods of Payment (TBC)
- Documentary Letters of Credit (TBC)