Home › Forums › Letters of Credit

transferable LC? or back to back LC?

4 replies [Last post]
Sat, 07/31/2010 - 23:27
SuCh
Offline
Joined: 07/31/2010
Posts:
Printer-friendly versionPDF version

Dear Friend,

I need your kind assistance. Am in a deal as a middleman for a commodity. Seller in Indonesia. Buyer is from China. Am considering transferable LC so that buyer will not know seller and margin.

Appreciate your input n advice. What must I be aware of and the responsibilities of being the first beneficiary of the transferable LC?

Alternatively, how does it compared to back to back LCs?

Thank you so much.

SuCh       

 

 

‹ Cancellation of an LC Identifying a carrier ›
Top
Sun, 08/01/2010 - 02:18
#1
pan
Offline
Joined: 09/13/2007
Posts:
transferable or back to back.

Hi friend,

first of all in case of back to back lc you need credit facility with your bank, in transferable l/c ,no..

Naturally you have to be abe to hide any reference to your buyer and seller to both parties.

An advice by your bank will be necessary to compose a workable l/c.

Other comments appreciated

Ciao

Top
Mon, 08/02/2010 - 08:49
#2
SuCh
Offline
Joined: 07/31/2010
Posts:
transferable or back to back

Ciao, Thank you for advice. :)

 

Top
Mon, 08/02/2010 - 08:13
#3
DC_ken
Offline
Joined: 07/21/2010
Posts:
Well there is a huge

Well there is a huge difference between these two “types” of L\C’s so I think you shouldn’t wondering not so long :) Back-to-back L/C require well experienced both traders and bankers. As I can conclude from your post you are not so experienced at the middleman trade so I think the best solution based on the information you provide is the transferable L\C because most of the banks are reluctant concerning the back-to-back operation and the seller will prefer transferable L\C because your eventual failure to provide substitute documents does not affect his right to receive settlement in case of complying presentation.

Top
Mon, 08/02/2010 - 08:56
#4
SuCh
Offline
Joined: 07/31/2010
Posts:
DC_ken Thanks! Appreciate

DC_ken

Thanks! Appreciate your input and good advice.

Top