Open Account Financing

Open Account transactions have been used more widely in the world than LC transactions. But Open Account Finance (OAF) has not yet been used optimizely within the corporates due to the lack of knowledge of these products and more banks will prefer to give plain working capital loans rather than OAF. This program will explain the step by step of the OAF process and how to minimize the risk from the Trade Finance perspective, as well as how to differentiate between conventional loan products and Trade Loans.

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

• Understand the concept and fundamentals of Open Account Financing products, i.e. Payables and Receivables Financing; how it works; how it can be leveraged from pre- and post-shipment transaction; what is with and without recourse transaction; how it is different from conventional term loan.

• Realizing the true benefit of the Open Account Financing product by its variants and step-by-step process from a documentation perspective.

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

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