Training Course on Advanced Working Capital and Trade Finance

Training Course on Advanced Working Capital and Trade Finance

Introduction

In today's dynamic global markets, characterized by supply chain volatility and evolving financial landscapes, mastering working capital management and trade finance is no longer just an operational necessity—it's a strategic imperative. This intensive course delves into sophisticated techniques for optimizing liquidity, enhancing the cash conversion cycle (CCC), and leveraging advanced trade finance instruments to mitigate risk and fuel sustainable business growth. Participants will gain actionable insights to navigate complex financial challenges and unlock hidden value within their organization's balance sheet and trade operations, ultimately securing a significant competitive advantage.

This program moves beyond foundational concepts to explore advanced working capital strategies, intricate trade finance structuring, and the impact of FinTech innovations. We will dissect complex scenarios involving supply chain finance (SCF), risk mitigation frameworks, international regulations like UCP 600 and Incoterms® 2020, and sophisticated funding solutions. Through practical case studies and expert-led sessions, attendees will develop the skills to implement robust financial strategies, improve cross-functional collaboration between finance, procurement, and sales, and drive superior financial performance through strategic liquidity management and trade facilitation.

Course Duration

10 days

Course Objectives

Upon successful completion of this course, participants will be able to:

1. Master advanced working capital optimization techniques beyond basic principles.
2. Critically analyze and strategically shorten the Cash Conversion Cycle (CCC).
3. Implement sophisticated receivables financing and credit risk mitigation models.
4. Develop strategic payables management approaches, including Supply Chain Finance (SCF).
5. Optimize inventory levels and associated financing costs using advanced models.
6. Structure and negotiate complex Letter of Credit (LC) transactions under UCP 600.
7. Effectively utilize Bank Guarantees, Standby LCs, and Documentary Collections.
8. Apply Incoterms® 2020 rules strategically to manage costs and risks in trade.
9. Design and implement effective trade risk mitigation frameworks (counterparty, FX, political).
10. Evaluate and leverage FinTech solutions for working capital and trade finance automation and efficiency.
11. Structure alternative trade finance deals, including factoring and forfaiting.
12. Analyze the impact of macroeconomic trends and regulations on WCM and Trade Finance.
13. Develop an integrated strategic roadmap for optimizing working capital and trade finance operations.

Organizational Benefits:

• Improved corporate liquidity and enhanced cash flow predictability.
• Reduced financing costs through optimized capital structure and trade terms.
• Strengthened supply chain resilience and improved supplier/buyer relationships.
• Effective mitigation of financial and operational risks associated with domestic and international trade.
• Increased operational efficiency through streamlined processes and technology adoption.
• Enhanced strategic decision-making capabilities within Finance, Treasury, and Procurement.
• Greater competitive advantage through superior financial management and trade execution.
• Improved Return on Capital Employed (ROCE) and overall profitability.

Target Participants

1. Finance Managers / Directors / CFOs
2. Treasury Managers / Analysts
3. Trade Finance Managers / Specialists
4. Supply Chain & Logistics Managers
5. Procurement & Sourcing Managers
6. Corporate Bankers (Relationship Managers, Trade Finance, Credit Analysts)
7. Credit Risk Managers / Analysts
8. Senior Accountants involved in AR/AP/Inventory

Course Outline

Module 1: Strategic Working Capital Management Framework

·         Beyond Basics: Linking WCM to Corporate Strategy

·         Advanced Cash Conversion Cycle (CCC) Diagnostics

·         Benchmarking Working Capital Performance

·         Developing a WCM Improvement Roadmap

·         Key Performance Indicators (KPIs) for Advanced WCM

Module 2: Advanced Receivables Management & Monetization

·         Sophisticated Credit Risk Assessment Models

·         Structuring Receivables Financing Programs (Factoring, Securitization)

·         Optimizing Collections Strategy with Technology

·         Managing Customer Disputes & Deductions Effectively

·         Sales & Finance Collaboration for DSO Reduction

Module 3: Strategic Payables Management & Supply Chain Finance (SCF)

·         Optimizing Days Payable Outstanding (DPO) Strategically

·         Implementing Dynamic Discounting Programs

·         Understanding Various SCF Structures (Buyer-led, Supplier-led)

·         Technology Platforms for SCF Implementation

·         Negotiating Favorable Payment Terms

Module 4: Inventory Optimization & Financing Techniques

·         Advanced Inventory Valuation & Control Models (Beyond EOQ)

·         Just-in-Time (JIT) vs. Just-in-Case (JIC) Strategies Post-COVID

·         Structuring Inventory Financing Deals

·         Impact of Supply Chain Disruptions on Inventory WCM

·         Collaborative Planning, Forecasting, and Replenishment (CPFR)

Module 5: Advanced Short-Term Funding & Liquidity Planning

·         Optimizing Bank Lines & Credit Facilities

·         Commercial Paper Programs & Market Access

·         Cash Pooling Structures (Domestic & International)

·         Advanced Cash Flow Forecasting Techniques (Scenario Analysis)

·         Managing Bank Relationships Strategically

Module 6: The Evolving Global Trade Finance Ecosystem

·         Key Players: Banks, ECAs, Insurers, FinTechs

·         Regulatory Landscape (Basel III/IV impact, Compliance)

·         Geopolitical Risks & Impact on Trade Flows

·         Sustainable Trade Finance Principles

·         Future Trends Shaping Trade Finance

Module 7: Mastering Letters of Credit (LCs) - Advanced Aspects

·         Complex LC Structures (Revolving, Transferable, Back-to-Back)

·         Deep Dive into UCP 600 & ISBP – Common Pitfalls

·         Managing Discrepancies & Refusal Notices Effectively

·         Silent Confirmations & Risk Participation

·         Electronic Presentation (eUCP) Opportunities

Module 8: Documentary Collections & Guarantees - Strategic Uses

·         Choosing Between Collections (DP/DA) and LCs

·         URC 522 Guidelines and Best Practices

·         Types of Guarantees (Bid, Performance, Advance Payment)

·         Demand Guarantees vs. Suretyships (URDG 758)

·         Managing Guarantee Claims and Expiry

Module 9: Incoterms® 2020 - Strategic Application

·         Detailed Analysis of Key Rule Changes from 2010

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