Managing International Trade Financing Risks

Finance & Investment

Next Intake: 12 Feb 2025 (Wed)

Basic
SkillsFuture
Short Courses

This module is conducted in-person.

Next course starts on

12 Feb 2025 (Wed) See Full Schedule

Fee

SGD1,744* (as low as SGD203.20 after maximum funding) Learn More

Duration

2 days
Weekdays (9am - 5pm)

Level

Basic

Who Should Attend

Corporate treasurers, finance and shipping executives
Professionals in trade credit insurance, risk management, audit, compliance and operations
Corporate bankers, junior trade specialists and management associates

Overview

Essentials of Trade Finance

International trade is a multifaceted and intricate domain, characterized by the frequent interaction of parties with unfamiliar counterparts, customs, and regulations in cross-border transactions. This two-day workshop delves into the spectrum of trade financing instruments employed to facilitate financing and mitigate risks in international trade transactions.

Participants will acquire a comprehensive understanding of the mechanisms underlying various payment methods, risk mitigation strategies, documentation requirements, and governing rules, as well as the ability to identify red flags associated with discrepancies and fraudulent activities.

Learning Objectives

Understand the key risks in international trade financing
Know governing rules & documentation for international trade
Learn the different methods of payment & their inherent risks
Apply control measures to mitigate risk exposures

Topic/Structure

Key Risks in International Trade Financing

Risks encountered by buyers & sellers in international trade
Performance, non-acceptance, documentation & payment risks
Measures to mitigate risks

International Trade Finance Rules

INCOTERMS 2020, Bills of Exchange Act
UCP 600, eUCP
URC522, ISP98, ISBP681, URR725, URDG758

Essential Documents

International Commercial Terms (INCOTERMS)
Essential documentation for trade transactions
Nature & characteristics of key documents

Methods of Payment & Inherent Risk

Open account
Payment in advance
Documentary collection
Documentary credit

Documentary Credit: Letter of Credit (LC)

Features, mechanism, risk & control
Specialized LCs – transferable, back-to-back, revolving & standby LC

Other Types of Instruments

Bank guarantees / Bonds
Supply chain financing

Risk & Controls in Trade Financing

Legal aspects of LC
Dealing with discrepancies & fraud

Assessment

As part of the requirement for SkillsFuture Singapore, there will be an assessment conducted at the end of the course. The mode of assessment, which is up to the trainer’s discretion, may be an online quiz, a presentation or based on classroom exercises.

Participants are required to attain a minimum of 75% attendance and pass the associated assessment in order to receive a digital Certificate of Completion issued by Singapore Management University.

Calculate Programme Fee

Fee Table

COMPANY-SPONSORED

PARTICIPANT PROFILE

SELF-SPONSORED

SME

NON-SME

Singapore Citizen < 40 years old

Permanent Resident

LTVP+

$523.20

(After SSG Funding 70%)

$203.20

(After SSG Funding 70%
+ ETSS Funding 20%)

$523.20

(After SSG Funding 70%)

Singapore Citizen ≥ 40 years old

$203.20

(After SSG Funding 70%
+ MCES Funding 20%)

$203.20

(After SSG Funding 70%
+ ETSS Funding 20%)

$203.20

(After SSG Funding 70%
+ MCES Funding 20%)

International Participant

$1,744

(No Funding)

$1,744

(No Funding)

$1,744

(No Funding)

All prices include 9% GST

Please note that the programme fees are subject to change without prior notice.

Post Secondary Education Account (PSEA)
PSEA can be utilised for subsidised programmes eligible for SkillsFuture Credit support. Click here to find out more.

Self Sponsored

SkillsFuture Credit: Singapore Citizens aged 25 and above may use their SkillsFuture Credits to pay for the course fees. The credits may be used on top of existing course fee funding.

This is only applicable to self-sponsored participants. Application to utilise SkillsFuture Credits can be submitted when making payment for the course via the SMU Academy TMS Portal, and can only be made within 60 days of course start date.

Please click here for more information on the SkillsFuture Credit. For help in submitting an SFC claim, you may wish to refer to our step-by-step guide on claiming SkillsFuture Credits (Individual).
Workfare Skills Support Scheme: From 1 July 2023, the Workfare Skills Support (WSS) scheme has been enhanced. Please click here for more details.

Company Sponsored

Enhanced Training Support for SMEs (ETSS)

Organisation must be registered or incorporated in Singapore
Employment size of not more than 200 or with annual sales turnover of not more than $100 million
Trainees must be hired in accordance with the Employment Act and fully sponsored by their employers for the course
Trainees must be Singapore Citizens or Singapore Permanent Residents
Trainees must not be a full-time national serviceman
Trainees are eligible for ETSS funding only if their company's SME status is approved prior to the course commencement date. To verify your SME's status, please click here.

Please click here for more information on ETSS.

Absentee Payroll