Letter of Credit Forum

2010-07-14 Dear LC experts, I am dealing with L/C's from Nigeria and other African countries as an Agent of a US Principal. To improve our sales volumes, we have started accepting Unconfirmed L/C's from African Banks with usance period of 90 to 150 days with known customers. With Field 49 stating 'MAY ADD', we are getting these L/C's adviced and confirmed through International banks in US or Europe and also discounting the bills. We are facing teething problems where in some instances the issuing bank refuces to state 'May Add' and sometimes International Banks do not accept L/C from certain banks based on their internal bank to bank lines. I would be grateful if you can share your advice on what precautions or steps should I follow to ensure a smooth and risk free L/C transaction for my Principals and at the same time provide credit period to Customers in high interest and high risk countries. Thanks and Regards, EXTRADE