Letter of Credit Forum

Hi Friend,

I dont see extra risks in allowing the beneficiary to use any bank negotiating its document. This happens when beneficiary

wants to be free to ask banks ready to negotiate. Banks, in efect, prefere that only a bank may act, but it may cost more

to beneficiary. Having worked with a medium sized bank, I afforded this problem daily, the l/c was always available with another bank, we checked documents, sent them to that bank and discussed on discrepancies, true or false they may be.

Then costs, normal costs retained by said bank and our commissions. So it is clear that an "available with any bank" incurrs in the advising bank commission and only one handling/negotiation  fee .

Mitigation:Documents acceptable only sent by a bank; negotiation/presentation to be noticed within 2 days.

Other comments appreciated

Ciao