Good day

Quite often when searching for sellers of products and having made the initial introduction, the potential seller would request a letter of intent, bank comforting letter and permission to do a soft probe.

This could prove to be an obstacle for a (new) trading business or agent with insufficient funds in the account. Consequently, the seller looks elsewhere.

Assume the middelman has a buyer (but not seller), and not sufficient funds in the account to be able to give a BCL for the full amount:

What advice would you give to overcome the obstacle?

In essence, in the above situation there are funds available (from buyer) but it is not available in the account of the trading house or middleman.

Nor would the buyer provide funds to the middleman unless a supplier is found (agreement signed). Catch 22.

Thank you.

J Reichert

Quoting from [Juane]:

Good day

Quite often when searching for sellers of products and having made the initial introduction, the potential seller would request a letter of intent, bank comforting letter and permission to do a soft probe.

This could prove to be an obstacle for a (new) trading business or agent with insufficient funds in the account. Consequently, the seller looks elsewhere.

Assume the middelman has a buyer (but not seller), and not sufficient funds in the account to be able to give a BCL for the full amount:

What advice would you give to overcome the obstacle?

In essence, in the above situation there are funds available (from buyer) but it is not available in the account of the trading house or middleman.

Nor would the buyer provide funds to the middleman unless a supplier is found (agreement signed). Catch 22.

Thank you.

J Reichert

Are you dealing in commodities?  If your dealing in manufactured products any Confirmed, Irrevocable L/C should suffice and or a Stand By Letter of Credit.

Ranger