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"Pre-Shipment loan" opened for Richard

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Sun, 06/15/2008 - 12:02
Frammi
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Joined: 08/17/2007
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Dear all

Please share your opinion of our concerning to pre-shipment loan
when we act as advising bank and negotiating bank then we got lc from
issuing bank but beneficiary have no[t] enough [money] to buy raw material to
produce the goods [as] required [under the credit], so we offer pre-shipment loan to
beneficiary.

During that time, the partial shipment is not allowed and
beneficiary produce[d] their goods too late. then lc [is]expired and
applicant didn 't amend the lc. How [could the] negotiaing bank solve this problem
with the beneficiary?

Please share your opinion? The more contribute to share this case is highly appreciated.

Kind Regards,

Richard

‹ Packing credit Bank indorsement ›
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Thu, 06/26/2008 - 18:21
#1
sstarasia
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Joined: 06/26/2008
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Pre-Shipmen Loan

Dear Richard

What kind of goods do you want to buy to this shiper?

I think this loan will release by benefeciary bank and therefore it is not your problem

As loong you got shipment then you LC will negotiate by benefeciary bank after document required complete and agree by you.

Could you show me content of LC before to far give you comment?

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Tue, 06/17/2008 - 12:58
#2
Frammi
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Sun, 06/15/2008 - 12:34
#3
Frammi
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The problem with discrepant documents.

Dear Richard,

the matter seems easy to me. As it is said: "There is no use to lock the stable door after the horse has bolted!"

In this case the financing is already running. You should try to support your clients with this business and in case the applicant is not prepared to amend the credit, ask him through your clients whether he is prepared to take up discrepant docs.

If so, present the docs under the credit on approval basis, referring to the credit number and to the relevant UCPs. And hurry up with it! There is no use in doing this cable-negotiation fuzz some Asian banks think smart to do.

It definitely is not! The goods are in ....(whereever they are) - so to whomever you want to sell them, the docs should be near.

If applicant or issuing bank should wish to step back from the business, the issuing bank is nevertheless forced to keep the docs in safe custody until they receive fresh instructions from you - for example to send them to another bank in ...(whereever they are) for collection.

My provocative language should bring up some contradicting comments, so let's see what the others think of it.

Just to ease your mind: I open some hundred credits a year. About 80 % of the documents show severe discrepancies and during the last five years I have had no presentation which was   n o t    accepted and paid within  10 calendar days.

-Each long journey starts with a small step-

Best regards

Frammi

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