securities
Post 1 of 3
working as a middle man how do you secure your commision through a contract or back to back LC?![[em11]](http://img.alibaba.com/images/eng/style/icon/emoticons_sweat.gif)
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20 Sep 2007 13:23
Post 2 of 3
Replying To [Haider1]:It would be far better that you ask your customer for a Transferable LC.
That way (as an example), he opens the LC to you for (say) $10,000.
You then transfer the same LC to the Supplier for (say) $9,000.
When the goods are shipped, the Supplier's bank claims the $9,000 from your bank, and your bank claims the $10,000 from your customer's bank. Your bank collects $10,000, pays $9,000 to the Supplier's Bank, and puts your $1,000 into your account.
Easy as that.
Speak to your bank about this matter.
![[em3]](http://img.alibaba.com/images/eng/style/icon/emoticons_grin.gif){kind=icon}
20 Sep 2007 14:29
Post 3 of 3
Replying to [Haider1]: This is one reason why many trading companies as for 10% or 20% deposit from their client. The deposit is their commission and the LC goes the factory. When you see 10% T/T and 90% LC this is often what is happening.
20 Sep 2007 14:46
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