Dear Members,
I and my partners intend on being the middle man of a trade arrangement of agricultural goods from country Z to country Y.
Our intention was to use a transferable L/C as the order quantity is well beyond our means to buy ourselves.
Most importantly, for the long term success of this business it is critical to prevent buyer and supplier from knowing each other's identity. I am not clear how I can ensure this.
-Is it possible to arrange a transferable L/C which does not stipulate any document's with the buyer's name?
-What role does switching the bill of lading play in all of this
-Would adding an additional corporate layer help? (e.g. buyer--->middle man company A ---> middle man company B---> seller)
-Would you recommend back-to-back L/C instead?
Any advice on how to best handle this situation?
All the best,
James
Hi Friend,
I think transferable l/c is more suitable for you, transferring a l/c in favour of second beneficiary is not granting a credit line as back to back lc. However you need advices from your bank to word documents and l/c.
Transferable l/c is not for all, your bank must have a good experience to handle it.
Other comments appreciated
Ciao
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