Letters of Credit

The benefit to using a letter of credit is that it provides a conditional assurance of payment from banks to the exporter (beneficiary) if the terms and conditions of the documentary credit are complied with.

In this course, you will learn about credit risk, the nuts and bolts of the LC process, and how to avoid discrepancies. You’ll learn some of the issues that either makes LCs an effective payment mechanism or a major headache and how you can avoid the latter.  

  • Module 1 -  The Letter of Credit Process
  • Module 2 -  INCOTERMS 2020 and the Role of Contracts
  • Module 3 -  LC Documentation
  • Module 4 -  Types of Discrepancies
  • Module 5 -  The Role of Banks and LC Terminology, Costs and Pricing
  • Module 6 -  Importance of Proper LC Structure
  • Module 7 -  Overview of the UCP 600
  • Module 8 -  Putting it all together

Chip Thomas: About Letters of Credit


Instructor:

Richard "Chip" Thomas, General Manager, American Export Training Institute, West Chester, PA

Mr. Thomas’ interest in international affairs and cultures began in high school where he had the opportunity to finish his junior and senior years at a private school in Zimbabwe, Africa.  He finished his B.A. from So. Illinois University in 1969, majoring in economics and history, and completed a master’s degree in 1975 from the Thunderbird Graduate School of International Management.  After his undergraduate degree, Mr. Thomas spent two and a half years working in Colombia, S.A. with the Peace Corps, followed by another two years in Colombia with the U.S. Information Agency (USIA).

Upon returning to the U.S. and completing his graduate studies, Mr. Thomas entered a 22-year career in international banking, specializing in international trade and finance.  This work led to extensive international travel, with a 2-year assignment working and living in Mexico.

During his banking career, Mr. Thomas developed a skill in training and was responsible for International Product and Service Training for Mellon Bank’s customers and employees.  Mr. Thomas left banking in early 1995 to pursue his interest in training by helping to establish the American Export Training Institute (AETI), which provides practical training in export finance to corporations and financial institutions throughout the U.S. and Canada.  Mr. Thomas is co-author of the Trade Finance Handbook, Thomson, 2005.  The book is targeted to small and mid-size companies (SMEs) interested in how to effectively enter the international trade arena.

Mr. Thomas speaks fluent Spanish.

Key:

Complete
Failed
Available
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Module 1: The Letter of Credit Process
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Open to view video.
Module 1 Quiz 1
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is the first quiz attempt. You must score at least 7/10 to pass. If not, please take quiz 2. You may take quiz 2 even if you pass quiz 1.
Module 1 Quiz 2
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is your second quiz attempt. If you do not pass with at least 7/10 the next module will not unlock. Please email conventions_info@nacm.org to reset your quiz attempts.
Module 2 - INCOTERMS 2020 and the Role of Contracts
Open to view video.
Open to view video.
Module 2 Quiz 1
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is the first quiz attempt. You must score at least 7/10 to pass. If not, please take quiz 2. You may take quiz 2 even if you pass quiz 1.
Module 2 Quiz 2
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is your second quiz attempt. If you do not pass with at least 7/10 the next module will not unlock. Please email conventions_info@nacm.org to reset your quiz attempts.
Module 3 - LC Documentation
Open to view video.
Open to view video.
Module 3 Quiz 1
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is the first quiz attempt. You must score at least 7/10 to pass. If not, please take quiz 2. You may take quiz 2 even if you pass quiz 1.
Module 3 Quiz 2
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is your second quiz attempt. If you do not pass with at least 7/10 the next module will not unlock. Please email conventions_info@nacm.org to reset your quiz attempts.
Module 4 - Types of Discrepancies
Open to view video.
Open to view video.
Module 4 Quiz 1
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is the first quiz attempt. You must score at least 7/10 to pass. If not, please take quiz 2. You may take quiz 2 even if you pass quiz 1.
Module 4 Quiz 2
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is your second quiz attempt. If you do not pass with at least 7/10 the next module will not unlock. Please email conventions_info@nacm.org to reset your quiz attempts.
Module 5 - The Role of Banks and LC Terminology, Costs and Pricing
Open to view video.
Open to view video.
Module 5 Quiz 1
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is the first quiz attempt. You must score at least 7/10 to pass. If not, please take quiz 2. You may take quiz 2 even if you pass quiz 1.
Module 5 Quiz 2
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is your second quiz attempt. If you do not pass with at least 7/10 the next module will not unlock. Please email conventions_info@nacm.org to reset your quiz attempts.
Module 6 - Importance of Proper LC Structure
Open to view video.
Open to view video.
Module 6 Quiz 1
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is the first quiz attempt. You must score at least 7/10 to pass. If not, please take quiz 2. You may take quiz 2 even if you pass quiz 1.
Module 6 Quiz 2
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is your second quiz attempt. If you do not pass with at least 7/10 the next module will not unlock. Please email conventions_info@nacm.org to reset your quiz attempts.
Module 7 - Overview of the UCP 600
Open to view video.
Open to view video.
Module 7 Quiz 1
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is the first quiz attempt. You must score at least 7/10 to pass. If not, please take quiz 2. You may take quiz 2 even if you pass quiz 1.
Module 7 Quiz 2
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is your second quiz attempt. If you do not pass with at least 7/10 the next module will not unlock. Please email conventions_info@nacm.org to reset your quiz attempts.
Module 8 - Putting it All Together
Open to view video.
Open to view video.
Module 8 Quiz 1
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is the first quiz attempt. You must score at least 7/10 to pass. If not, please take quiz 2. You may take quiz 2 even if you pass quiz 1.
Module 8 Quiz 2
10 Questions  |  1 attempt  |  7/10 points to pass
10 Questions  |  1 attempt  |  7/10 points to pass This is your second quiz attempt. If you do not pass with at least 7/10 the next module will not unlock. Please email conventions_info@nacm.org to reset your quiz attempts.
Certificate
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