Non-Fund Based Financing - Online training module

 

In this eLearning module on Non-Fund Based Financing, we will look at non-fund based facilities, specifically letters of credit, limit assessment, and the various types, as well as bank guarantees with a focus on performance guarantees, and the method used to assess bank guarantees.

 

Coverage and structure for eLearning module

 

Topic

Sub-topic

Non fund based facilities

  • Types of Non-Fund Based Facilities
  • Benef its of non-fund based facilities

Introduction to Letters of Credit

  • Meaning & characteristics of LC’s
  • Parties Involved
  • Process Flow
  • Caveats of an LC
  • FEDAI Guidelines on LC Pricing
  • LC Pricing and Fees

Assessment of LC Limit

  • Process Overview
  • Estimate Purchase of Raw Material
  • Decide LC Purchase Amount
  • Calculate Total LC Period
  • Derive LC Limit
  • Deriving LC Limit—Seasonal LCs

Types of LCs

  • Understanding Back to Back LCs
  • Understanding Transferable LCs

Introduction to Bank Guarantees

  • Meaning & characteristics of a bank guarantee
  • Operation of a Bank Guarantee
  • How does a BG operate
  • Payment mechanism of a BG
  • Dif f erent types of BG’s

Performance Guarantee

  • Types of performance guarantees
  • Capability Analysis
  • Project Progress Monitoring
  • Project Monitoring Through Escrow Account

Assessment of a BG

  • Determining Bid Bond Limits
  • Determining APG Requirement
  • Determining PG Limits
  • Total Value of Bank Guarantees
  • Pricing of Bank Guarantees
  • Inf low Analysis
  • Outf low Analysis
  • Covenants

 

 

Module Fees: Rs. 2500/-                                  Access period: 3 months                                 Learning time: 3 hours

 

 

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