Objective

The overall goal of this three day workshop is to use a structured and systematic approach to assess and manage the risks inherent in international trade and understand the techniques used to mitigate and/or transfer risks between the parties involved in the transactions. The focus is on understanding the working capital cycle of a business, identifying financing needs, and structuring solutions to meet client needs; whilst appropriately managing the risks in order to recommend optimal trade finance solutions. The workshop is highly interactive where participants apply key concepts from the course to exercises and case studies. Specifically, participants will be equipped to:

• Apply a structured approach to identifying the key risks to which importers and exporters are exposed and match trade finance solutions
• Understand the key drivers of cash generation and cash use throughout a company’s business cycle and how this changes as a result of economic and commodity cycles, organic and acquired growth, and company-specific strategic initiatives
• Distinguish the main features, benefits and risks mitigation characteristics inherent in a wide range of structured and trade finance products
• Recognise the accounting, cash flow and capital requirement implications of trade finance products
• Structure trade finance transactions to meet client need and minimise risk to the Bank

Analytic approach to business development

A structured approach to assessing a company’s cash flow and identifying trade finance requirements

Working capital and cash from operations

• Impact of profits and working capital on core cash flow
• Working capital objectives and implications from a Treasurer’s perspective
• Seasonal, permanent and growing working capital funding needs
• Retailer’s chain vs. manufacturing operation supply chain vs trading house

Financing and investing activities

• Investment decisions and impact on longer term credit standing of the company
• Financing needs (short term revolving vs. long term amortising), debt repayment capacity and refinancing

Funding strategies

• Criteria which drive decision making: o Access to various forms of trade finance: parties involved, trade flows and supply chain, costs and benefits, local regulatory provisions.
  • Alternative funding sources: traditional credit products, market imperfections allowing pricing arbitrage.
  • Balance sheet implications (including off-balance sheet)
• Potential product solutions: cost and management systems needed for end-to-end deal execution to support their choice