AFP Monthly Meeting - January 2021

We're pleased to announce the first event of 2021 featuring the "Queen of Letters of Credit," Danielle Austin. If you think all L/C presentations are the same, this one will change your mind. Danielle offers a practical and entertaining view from an exporters perspective and will provide meaningful information, ideas, and materials that Treasury & Finance can actually use! (Please note: WebEx link will be issued in the registration email)

Using an Export Letter of Credit as a secured international sales tool

Create a win-win for sales and finance; leverage the U.S. rates by using a usance LC with extended terms to your foreign buyers, and still get paid in days for ZERO bank fees, and LCs are 100% secured. Understand how to leverage the rate arbitrage to your advantage.

This class is taught from the Exporter’s perspective. It will help equip your team to grow your international sales securely. This webinar will help take the intimidation and hassle out of LCs!  

Discussion highlights:

• Increase your working capital by decreasing your DSO
• Imagine your receivable decreases from 45 or 60 days, and paid within 10 days
• Take control of this process from negotiation to payment
• Use the LC as a secured sales tool and risk mitigation, yes both
• Asking for CIA Cash-In-Advance? Understand the risk, and “sales prevention”
• LCs are 100% secured
• Add these Receivables back into your borrowing base
• LC can be paid within days, sooner than product arrives in the other country
• Learn how to keep this process super simple without compromising service or documents
• Trade Credit Insurance can be expensive with an annual contract
• Provide your buyers with proactive “Letter of Credit Instructions”
• Streamline the LC structure, payment, decrease fees, and documents
• How to create consistency for every LC issued and Advised
• How to avoid all the bank fees
• Every discrepancy is avoidable
• LCs do not have to be complicated, learn how to keep it super simple
• How to get paid in days?
• Use your ERP system to prepare documents for payment
• Documents can be “bank ready” at the time of shipment
• LCs should be paid sooner than product arrives in the other country
• How to make sure the LC is payable in the U.S.
• Understand which SWIFT tags impact payment
• Learn how to “audit” it prior to releasing the shipment
• INCOTERMS:
• Know the risk, and how to be in control
• Leverage the Incoterms during sales negotiation, never pay for freight
• Why Freight Collect (FOB/EXW/FAS/FCA) is higher risk?
• Looking to grow your [International] Sales?
• This tool could differentiate your sales, and make you more competitive
• LC Advised in the U.S. should offer a minimum of 180-days. Why wouldn’t you give your best buyers access to a lower cost of funds, an additional source of liquidity and still get paid in days?

• Understand the process, and how LCs are now being used as a “sales tool”

  Materials provided

Speaker Bio

Danielle Austin is a recognized professional for providing informative articles, workshops, in-house training, and webinars on Export Letters of Credit. She’s published through various International Trade journals and contributing editor for LCM-Letter of Credit Monitor. She presents from the Beneficiary’s point of view. She originated Export Letters of Credit on LinkedIn with over 5,000 members. She will equip any Exporters how to simply master the art of this process and her mission is to “Educate the Exporters”.  She represented U.S. Exporters for a UCP600 revision meeting in Paris on the U.S. Banking Committee through the United States Council for International Business (USCIB). With a comprehensive understanding of the UCP (Uniform Customs Practice), ISBP (International Standard Banking Practice), and Incoterms, her training provides the most effective methods to manage this process internally. Her motto is “Let’s turn your discrepancies into payments, don’t be at the mercy of the Buyer, their Freight Forwarder or the Issuing Bank, learn how to take control of this process!”  

Danielle is Export Trade Finance Manager at Umpqua Bank in Sacramento CA. She’s an active advisor within many industries including: Technology, Equipment, Agriculture; Rice, Walnuts, Almonds, Wine, Tomatoes, Potatoes.