The course provides a comprehensive foundation for understanding all aspects of International Trade Finance in a global context, covering the key principles, concepts, infrastructures, practices, issues, and current developments.

Although the full course is divided into four parts, which together form a complete picture of international trade, its various instruments, its operations and its financing, each part may be studied as a stand-alone unit.

Part 2 of the course covers:

  • The key concern in International Trade in providing a safe conduit for the transfer of ownership of the shipment in return for payment.
  • A comprehensive examination of the different payment Instruments that may be used to settle International Trade transactions, including the process, the advantages/disadvantages and the risks attached to each.

This course will be of special interest to banking, business, and import/export professionals who wish to expand their knowledge base as well as enhance their expertise and advance their careers in or gain a deeper understanding of the international trade finance arena.

Course Series

This course is included in the following series:

4 CoursesInternational Trade Finance

  1. International Trade - Part 1: Trade Finance Instruments
  2. International Trade - Part 2 - Payment Instruments
  3. International Trade - Part 3 – International Payment Systems
  4. International Trade - Part 4 – Supply Chain Finance
Learning Objectives
  • Discover the how international trade finance payment instruments work.
  • Identify the advantages and disadvantages of the different international trade finance payment instruments.
  • Discover the various parties and their roles in the international trade finance payments arena.
  • Explore the risks inherent in the different payment instruments used in international trade finance.
Last updated/reviewed: March 21, 2024
7 Reviews (23 ratings)


Member's Profile
Good course to gain an understanding of the buyer's, seller's and bank's risk exposures in relation to the payment instruments within International Trade.

Member's Profile
the content is very clear to understand, and yet provide sufficient knowledge level on key terms that are difficult to learn on the job training

Anonymous Author
I appreciated the depth of the content but clarity was lost on a few topics relative to the exam. a great course nonetheless!

Member's Profile
This was helpful. I didn't know much on the topic prior to this class and was still able to follow the presentation.

Anonymous Author
Very helpful. I have reviewed this material before, but it was great to get a refresher on it.

Member's Profile
good information and detail of different major payment types and bank involvement

Member's Profile
The course is well laid out and the presenter is knowledgeable and concise.

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course but it is recommended you take Part 1 before completing this course. 



Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Introduction to International Trade - Part 2 - Payment Instruments1:55
Payment Instruments
  Underlying Problems of International Trade9:39
  Payment Mechanism Choices1:54
  Payment Mechanism Choices - Open Account6:46
  Payment Mechanism Choices - Cash in Advance6:21
  Payment Mechanism Choices - Documentary Collections12:35
  Payment Mechanism Choices - Documentary Credits - Part 111:39
  Payment Mechanism Choices - Documentary Credits - Part 214:59
  Course Wrap-Up2:50
  International Trade - Part 2 - Payment Instruments 1:08:38
  Slides: International Trade - Part 2 - Payment InstrumentsPDF
  International Trade - Part 2 - Payment Instruments Glossary/IndexPDF
  Payment Instrument ExamplesPDF