Letter of Credit (LC) and SKBDN (Surat Kredit Berdokumen Dalam Negeri)

Most trade transactions, especially in the first 3-6 months of newly trading with new clients (buyer and/or seller) are using Letter of Credit transactions. This is due to the unknown risks from both parties as they did not get to know each other previously. But sometimes, several countries' regulations are also taking part in the reasons why some companies are still using LC for their trading transactions.This program will explain the step by step of the Letter of Credit and SKBDN (local LC) process, including types of LC (Sight, Usance, UPAS, UPAU), Tranferrable LC, Back to Back LC, Confirmation LC, Red/Green Clause LC; and how to minimize the risks from the Trade Finance perspective. We will also discuss how corporates can seek financing from their LC transactions, from both sides (Buyer and Seller) with variants products of LC based financing.

After completion of this program, participants will be better able to:

• Understand the concept and fundamentals of Letter of Credit products, i.e. T/R Financing, LC Negotiation and Forfeiting products under Structured Trade Finance.

• Realizing the true benefit of the Letter of Credit product by its variant

• Understand the accounting treatment and its impact on Balance Sheet Management

• Set up an appropriate action plan for improvement and sustaining business