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LC extension possibility

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Mon, 06/30/2014 - 03:16
ramosy997
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Joined: 06/30/2014
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Good mornind Experts,

As buyers/aplicant we have requested beneficary to extend one LC for extra 45 days with all costs/expenses being supported by our side.

We have been informed by beneficiary that such request was not possible because such request was denied by their bank due to the fact that they have already discounted this L/C and got a credit on this maturity.

Could someone confirm if this is possible? Considering that both parts are on agreement, does the discount of LC by the beneficiary´s bank blocks the possibility to extend it?

Thank you in advance for your help,

Best Regards,

RR

‹ Bill of Lading SBLC or DLC in BLCO ›
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Mon, 06/30/2014 - 04:23
#1
pan
Online
Joined: 09/13/2007
All is already closed!

Hi Friend,

you are speaking of a letter of credit already availed, with a maturity, with all papers exchanged etc. It is very hard to modify what has been already "closed".

The problem is that you as applicant you have no possibility to pay your bank for the l/c. So ask your bank to pay and finance this payment for 45 days. From bank risk point of view it is the same or not.Isn't?

Let us know.

Ciao

 

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