Fundamentals of Trade Finance

OBJECTIVES

• Gain a solid understanding of Trade Finance basics including products, services, types of trade, and payment terms.
• Understand how banks fund and price Trade Financing products and services, and how fee and interest income are generated.
• Identify and understand key financial, commercial, transport, and official documents and their functions.
• Learn about governing ABM Rules, ICC Rules, BNM Regulations, Banks’ SOPs and Credit Policy Guides.
• Recognize inherent risks in Trade Financing products and learn mitigation strategies to avoid costly mistakes.
• Understand roles and responsibilities of Trade Operations, Trade Sales, and Trade Product Owners.
• Learn the purpose and risk implications of INCOTERMS and how risks are transferred from sellers to buyers.
• Understand the critical fields in Trade Finance application forms and their importance.
• Gain familiarity with various traditional Trade Finance instruments available from banks.

METHODOLOGY

Workshop-based sessions including lectures, facilitator experience sharing, and class discussions on real-life cases.

WHO SHOULD ATTEND?

• Fresh Graduate Trainees
• Relationship Officers & Managers
• Trade Sales & Operations Officers & Managers
• Business Unit Officers & Managers
• Risk Management, Audit & Compliance Officers
• Branch Managers & Officers
• New Recruits and Trainees on Attachment

PROGRAM OUTLINE

1. Introduction to Trade Finance – Types of trade, payment terms, pricing mechanisms, and roles of Trade Sales & Operations Officers.
2. Trade Services Products – Collection Bills, Letters of Credit, Bank Guarantees, and Shipping Guarantees.
3. Trade Financing Products – Trust Receipts, Bills Purchased/Discounted, Invoice Financing, LC Negotiation, Bankers Acceptances.
4. Financial & Commercial Documents – Functions of shipping documents, control, and safekeeping.
5. Roles & Responsibilities of Trade Finance Department – Segregation of duties, processing turnaround time, and 4-eye principle.
6. Trade Financing Risks & Mitigation – Identifying international trade risks, operational errors, and controls.

CERTIFICATE OF PARTICIPATION

PARTICIPATING FEE

RM2,160 per person (2-day course) – Inclusive of lunch, tea breaks, course notes, certificate of participation, and 8% SST.
HRD Corp Claimable under SBL-Khas