Webinar on Supply Chain Finance

Why Should You Attend:

This 90-minute webinar will

• Explore the history and drivers of supply-chain finance
• Compare the mechanics of various supply-chain finance programs with each other
• Compare the risks and costs of supply-chain finance with letters of credit
• Understand the accounting issues faced by importers and exporters when arranging receivables purchases
• Review supply-chain finance programs being offered by Exim Bank and the World Bank

Areas Covered in This Session:

• The Predecessors of Supply-Chain Finance
  • Letters of credit
  • Trade acceptances and forfaiting
  • Purchase order tracking
  • Payables extension programs
• Challenges
  • The SEC opinion on bank debt
  • Security interest laws in countries of suppliers
  • “True sale” laws
  • Pre-export financing
• The Current Playing Field
  • Domestic programs
  • Purchase order-invoice matching applications
  • Bank Payment Obligations (“BPOs”)
  • On-line trade acceptances
  • Value-dated payment orders
  • Export Credit Agency and Multilateral Development Bank support

Who Will Benefit:

The following personnel from across industries will benefit:

• Attorneys
• Credit and collection managers
• Presidents of supply chain, trade and finance
• Vice presidents of supply chain, trade and finance
• Business owners
• Managers of supply chain, trade and finance
• Lending professionals
• Accountants
• Bankers

Instructor Profile:

Walter (Buddy) Baker, has over 30 years of experience in international trade finance. In May 2009 he joined Fifth Third Bank where he heads their Global Trade Solutions Delivery team. Fifth Third is one of the 20 largest banks in the US and provides a full range of risk mitigation and financing products for exporters and importers. Prior to Fifth Third, Buddy worked for Atradius Trade Credit Insurance, ABN AMRO Bank, Bank of America, Wachovia Bank, and The First National Bank of Chicago.

Buddy is a recognized expert in trade finance and author of numerous magazine articles and the books Users’ Handbook to Documentary Credits under UCP600, Documentary Payments & Short-Term Trade Finance, and The Regulatory Environment of Letters of Credit and Trade Finance. He owns the consulting firm Global Trade Risk Management Strategies, which specializes in educational training, and makes frequent presentations for national associations of exporters, importers, bankers and lawyers. Mr. Baker serves as a member-at-large of the National Letter of Credit Committee of the International Financial Services Association and is actively involved in establishing national and worldwide standard practices for LCs, such as the recent revision of the Uniform Customs and Practice for Documentary Credits (referred to as UCP600), the official ICC guide for examining letter of credit documents, called the International Standard Banking Practices for the Examination of Documents under Documentary Credits, the eUCP supplement to the UCP dealing with electronic documents, the International Standby Practices, and Article 5 of the Uniform Commercial Code. He acts as an advisor to the Institute for International Banking Law and Practice and also serves on the Board of Directors of the Association of International Credit and Trade Finance Professionals (ICTF), a multinational association of export credit managers.

Buddy earned his undergraduate degree at Yale University and his MBA at Northwestern.

Topic Background:

It seems the latest and greatest technique for creating business efficiencies is “supply-chain management.” An important component of this is supply-chain finance. So what, exactly, is “supply-chain finance”? Although the term has been applied in a wide range of contexts, it has particular application to structures in which a bank provides financing to the suppliers of a bank customer. While the concept has roots in letters of credit and forfaiting, it is a new approach and is still mutating. Variations are known as “reverse factoring” and “approved invoice financing” and may involve “purchase order-invoice matching applications” and “bank payment obligations.” Importers are desirous of such solutions to the problem of making sure one’s suppliers are able to obtain dependable, low-cost financing. Banks are struggling with the risks and costs of developing new products and exporters are finding themselves faced with offers they must not refuse to join their customers’ supply-chain finance programs.

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