letter of credit
Post 1 of 13
Is that a normal thing manufacturer does not accept letter of credit for small quantity order value more than 1000 USD
Award 10 MVPs (
What's this?
)for the best answer.
29 Nov 2007 00:15
Post 2 of 13
Replying To [Big Joe]:More than likely, 1,000 USD is not a big amount for an LC.
It would cost you several hundred to open the LC and would cost the seller a large chunk too to claim on the LC.
29 Nov 2007 04:26
Post 3 of 13
Replying to [Big Joe]:
Dear Big Joe,
Letter of credit is the life blood of international commerce additionally, suppliers tend to like letters of credit as they can often transfer letters of credit to pay for their raw materials or indeed in some countries they can use these letters of credit as collateral to obtain business to business finance from their bank but the sellers do not want to hassle with an L/C for an amount just over USD 1.000 because of the following two good reasons;
- The letter of credit procedure is too bureaucratic, tedious and takes simply too long.
- Letter of credit is more expensive than any other instrument of international settlement.
If you prefer to work with a Alibaba Trustpass member or Alibaba Gold Supplier when you decide to buy, you will lower your risks dramatically.
I hope it helps
Tekin De Niro
Dear Big Joe,
Letter of credit is the life blood of international commerce additionally, suppliers tend to like letters of credit as they can often transfer letters of credit to pay for their raw materials or indeed in some countries they can use these letters of credit as collateral to obtain business to business finance from their bank but the sellers do not want to hassle with an L/C for an amount just over USD 1.000 because of the following two good reasons;
- The letter of credit procedure is too bureaucratic, tedious and takes simply too long.
- Letter of credit is more expensive than any other instrument of international settlement.
If you prefer to work with a Alibaba Trustpass member or Alibaba Gold Supplier when you decide to buy, you will lower your risks dramatically.
I hope it helps
Tekin De Niro
29 Nov 2007 04:38
Post 4 of 13
Replying to [Big Joe]:
It's more than normal ... it's just not done for the reason Grigo said.
Moreover, no decent actual manfacturer of most lines of goods would even consider a $1,000 order.
![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif)
It's more than normal ... it's just not done for the reason Grigo said.
Moreover, no decent actual manfacturer of most lines of goods would even consider a $1,000 order.
29 Nov 2007 05:41
Post 5 of 13
Replying to [Big Joe]:
yeah, same idea with the upstairs.
So smalll amount, not good for both side.
Wire Transfer is ok. Most companies in china
are well credited
yeah, same idea with the upstairs.
So smalll amount, not good for both side.
Wire Transfer is ok. Most companies in china
are well credited
29 Nov 2007 17:58
Post 6 of 13
Replying to [Big Joe]:
we never use L/C,only T/T. i think L/C for big money is ok, if only what you said 1000USD, it is no sence.
we never use L/C,only T/T. i think L/C for big money is ok, if only what you said 1000USD, it is no sence.
29 Nov 2007 18:51
Post 7 of 13
Replying to [Big Joe]:
Hi, Joe,
It's common case. As Your order is samll and the banking charges outside your area are the manufactory, eg. postage, advising and payment commission, reimbursement commission and so on),
Hi, Joe,
It's common case. As Your order is samll and the banking charges outside your area are the manufactory, eg. postage, advising and payment commission, reimbursement commission and so on),
29 Nov 2007 18:51
Post 8 of 13
Replying to [Big Joe]:
i do not know. i am a green hand. but i think the manufacturer wants to the payment terms as T/T this is the effective one, i think many manufacturers like to accept this one.
i do not know. i am a green hand. but i think the manufacturer wants to the payment terms as T/T this is the effective one, i think many manufacturers like to accept this one.
30 Nov 2007 00:35
Post 9 of 13
Replying to [Big Joe]:
I am as a manufacturer would like to answer you:
1.It is very normal that manufacturer do not accept L/C for USD1000.
2.Most of the manufacturer are not like trading companies that so familiar with L/C, so that do not accept, such like there's so many document to be according to the L/C, it is trouble to operate.
3.Most of the manufacturer do not have there export license, therefore, they do not have their own USD bank account for L/C, it would be too unconvenience to ask other company to help them to deal with the L/C.
regards,
kenny
I am as a manufacturer would like to answer you:
1.It is very normal that manufacturer do not accept L/C for USD1000.
2.Most of the manufacturer are not like trading companies that so familiar with L/C, so that do not accept, such like there's so many document to be according to the L/C, it is trouble to operate.
3.Most of the manufacturer do not have there export license, therefore, they do not have their own USD bank account for L/C, it would be too unconvenience to ask other company to help them to deal with the L/C.
regards,
kenny
30 Nov 2007 01:15
Post 10 of 13
Replying to [Big Joe]: there is not a rule for this. but the seller has some reason to deny it, u see, dealing with LC for such a little bit amount, the fees of handling LC is very high. then the seller's margin will become too slim.
30 Nov 2007 01:59
Post 11 of 13
Replying to [Big Joe]: there is not a rule for this. but the seller has some reason to deny it, u see, dealing with LC for such a little bit amount, the fees of handling LC is very high. then the seller's margin will become too slim.
30 Nov 2007 02:00