We already have an "Ask an Expert" forum but I want to address the subject matter in the heading.  Since this is a thread that I will control, I ask that only questions pertaining to the subject matter be asked.  All other questions will be deleted. 

Also, the only members that will be allowed to respond will be any Alibaba moderator and one non-moderator CATALYST !   Replies from others not of this list will be deleted as well. 

This is to serve as a point of reference whereby all members can learn from the experience of those engaged in trading via the use of this type of payment and how using them may affect your business. 

At the end of March I will award points to each moderator or Catalyst for their participation in this thread.   This will continue for each continuing month.  If you are a non-moderator and you feel that you too have the expertise to answer questions you can contact me through Trade Manager and or write an article that would be attached to your profile for review by a published author of the subject matter.

Best regards,

Ranger

I have a question regarding flow of documents and information. I hope you can help me.

I am a facilitator.
On DLC's is there any way to keep the buyer and seller from knowing how much either party is paying or charging thereby protecting the confidentiality of my commission?

The buyer places a DLC the seller issue a performance bond so must the commission and net pricing be fully disclosed?

Your assistance in how to properly structure this to maintain privacy would be greatly appreciated.
Best regards,
glenn rodgers

Quoting from [aquatech1]:


I have a question regarding flow of documents and information. I hope you can help me.


I am a facilitator.

On DLC's is there any way to keep the buyer and seller from knowing how much either party is paying or charging thereby protecting the confidentiality of my commission?


The buyer places a DLC the seller issue a performance bond so must the commission and net pricing be fully disclosed?


Your assistance in how to properly structure this to maintain privacy would be greatly appreciated.

Best regards,

glenn rodgers

It's hard to hide your commission between seller and buyer when they use LC directly, maybe you have to consider transferable LC (because eventhough the LC must state "transferable" so the buyer and the seller will know that you are broker, but they will not know your commission). but for performance bond, maybe you can try transferable standby Letter of Credit with same treatment of transferable LC.

It will be easier if you will get involved in transaction tobe a buyer of your seller and to be a seller's of your buyer.

Rgds

 

Quoting from [aquatech1]:


I have a question regarding flow of documents and information. I hope you can help me.


I am a facilitator.

On DLC's is there any way to keep the buyer and seller from knowing how much either party is paying or charging thereby protecting the confidentiality of my commission?


The buyer places a DLC the seller issue a performance bond so must the commission and net pricing be fully disclosed?


Your assistance in how to properly structure this to maintain privacy would be greatly appreciated.

Best regards,

glenn rodgers

Glenn, under the circumstances you mention there really is no way to protect that information.  I'am curious are you trying to get a commission in both directions from each of the parties?

I'd suggest that you were up front with your buyer and tell them exactly what your percentage of commission is, and or purchase a blanket bond for your business as facilitator.  In this case you could then hide your commission as long as the DLC was transferable and assigned to you as first beneficiary.  From only a few words on a page it is hard to know what your experience is in facilitating trade deals.  For more than 20 years we used such a blanket bond.  Just know not to do more deals than those that will be covered by your bond.  You can still of course expect that the supplier provide you with a performance bond.

Ranger

Looks like there are very few takers for this page. All the related questions are being asked through direct questions elsewhere in the Forum.
I am still hoping that, some body, some day.......!

We at Amex Traders,Inc would like to know about Letter of Credit:

The buyer would like to open L/C on our name not the supplyer's name. How can we manage finance ? Please reply us at amexmedi@yahoo.com

amexmedi wrote:

We at Amex Traders,Inc would like to know about Letter of Credit:

The buyer would like to open L/C on our name not the supplyer's name. How can we manage finance ? Please reply us at amexmedi@yahoo.com

Hi,

You could try out a Transferable Credit. This item is covered in detail in Article 38 of UCP 600. Basically, the LC would be opened by the buyer in your favour (as you've asked for in the question). You would then request the advising bank to transfer a part of it or fully to the actual supplier. The terms on which this transfer would be effected would be set by you - and, of course, should have the transferring bank's consent. The supplier would have to submit the shipping documents to you/your bank. Thereafter, you have the option to replace some of the documents (including the invoice) and send the whole lot off to the overseas buyer.