How much seller charge interest if USANCE L/C
Post 1 of 4
I noticed that in some cases The Seller charges extra ordinary
interest if USANCE L/C is there. Please in normal and average
deal how much seller should charge ....
ID int786
interest if USANCE L/C is there. Please in normal and average
deal how much seller should charge ....
ID int786
09 Jan 2008 06:10
Post 2 of 4
Replying to [int786]:
It should be not much more than the interest he pays to the bank from where he obtains finance. The seller would be out of funds for the period of usance given to you. He is actually financing your purchase. So he should recover his cost. So the interest rate and amount should have a direct relation to the rate at which his own bank charges him.
Anything abnormal, should be re-negotiated.
It should be not much more than the interest he pays to the bank from where he obtains finance. The seller would be out of funds for the period of usance given to you. He is actually financing your purchase. So he should recover his cost. So the interest rate and amount should have a direct relation to the rate at which his own bank charges him.
Anything abnormal, should be re-negotiated.
12 Jan 2008 18:28
Post 3 of 4
Replying to [int786]:
If you think exorbitant usance charges are claimed from you then you can insert the following clause in fld 47 A
"Usance charges should not exceed LIBOR plus 1 percent", or whatever rate you deem feasible.
Regards
If you think exorbitant usance charges are claimed from you then you can insert the following clause in fld 47 A
"Usance charges should not exceed LIBOR plus 1 percent", or whatever rate you deem feasible.
Regards
17 Jan 2008 10:30
Post 4 of 4
Replying to [int786]: they will charge with how much the bank charge them. the cost depends on which country, in China, it would be about USD150.00
14 Mar 2008 03:30
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