The buyer wants to pay at the unloading port, but the seller wants payment to be by SBLC. The buyer, however, wants payment to by by irrevocable LC.
What can I do to make this transaction work? Would you suggest negotiating a DLC for both the buyer and seller? I'm stuck and would appreciate feedback. Thanks.
Quoting from [John N]:
I have a question regarding a transaction. I represent the buyer...Here's the situation:
The buyer wants to pay at the unloading port, but the seller wants payment to be by SBLC. The buyer, however, wants payment to by by irrevocable LC.
What can I do to make this transaction work? Would you suggest negotiating a DLC for both the buyer and seller? I'm stuck and would appreciate feedback. Thanks.
NOTE: I forgot to add that the buyer's bank does not issue SBLC.
Quoting from [John N]:
I have a question regarding a transaction. I represent the buyer...Here's the situation:
The buyer wants to pay at the unloading port, but the seller wants payment to be by SBLC. The buyer, however, wants payment to by by irrevocable LC.
What can I do to make this transaction work? Would you suggest negotiating a DLC for both the buyer and seller? I'm stuck and would appreciate feedback. Thanks.
Well since you say that the buyers bank can't issue an SBLC I'd tend to believe that they are in Europe. Your really at a crossroads if neither will be flexible. The fact that the buyer wants pay at the unloading port suggests they are not even interested in any form of a Letter of Credit. Instead it would seem they really want payment to be a documentary collection most noteably with D/P terms.
By the way all DLC's are considered to be Irrevocable under UCP600.
If this is a deal between first time buyer and seller. Then I see no reason for the seller to accept anything less than a DLC confirmed, at sight. Why is it that the buyer doesnt want to pay before then? Inspection?
If its inspection then they should have a 3rd party inspect the goods before shipment and include the certification document as one of the documents presented for negotiation with the draft.
If they are not going to move then have the supplier issue a BG dated at some future date beyond the date of unloading.
Ranger
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Quoting from [John N]:
I have a question regarding a transaction. I represent the buyer...Here's the situation:
The buyer wants to pay at the unloading port, but the seller wants payment to be by SBLC. The buyer, however, wants payment to by by irrevocable LC.
What can I do to make this transaction work? Would you suggest negotiating a DLC for both the buyer and seller? I'm stuck and would appreciate feedback. Thanks.
Ranger,
Since this is a first time deal, there is an issue of trust. Even with inspection, they want the peace of mind of seeing the goods at the unloading port.
Quoting from [John N]:The Villager say :
Invite the buyer to pay for a visit at the last few days before stuffing/loading day.
Let the buyer see by own eyes all the goods before packing & stuffing.
And ask him to pay COD (Cash on Delivery) ex factory/warehouse.
IF it is needed, pay for the hotel and ticket for it.
What can I do to make this transaction work? Would you suggest negotiating a DLC for both the buyer and seller? I'm stuck and would appreciate feedback. Thanks.
Hi
I had the same situation , normally the buyer is afraid of correct delivery , i changed this around to proof of past performance that was supplied then the buyer changed to paying at
port of loading , with regards to payment i believe that buyers dont understand the wording and if you explain it correctly they will eventually understand , you can reply via email
if you want more help vorsterhj@vodamail.co.za
Quoting from [John N]:
I have a question regarding a transaction. I represent the buyer...Here's the situation:
The buyer wants to pay at the unloading port, but the seller wants payment to be by SBLC. The buyer, however, wants payment to by by irrevocable LC.
What can I do to make this transaction work? Would you suggest negotiating a DLC for both the buyer and seller? I'm stuck and would appreciate feedback. Thanks.
![[em7]](http://img.alibaba.com/images/eng/style/icon/emoticons_shy.gif){kind=icon}
I'm a have no idea about this.i am a graduated student now as a forgein trader.Feeling upset to no customer.who can help me.
Quoting from [John N]:
I have a question regarding a transaction. I represent the buyer...Here's the situation:
The buyer wants to pay at the unloading port, but the seller wants payment to be by SBLC. The buyer, however, wants payment to by by irrevocable LC.
What can I do to make this transaction work? Would you suggest negotiating a DLC for both the buyer and seller? I'm stuck and would appreciate feedback. Thanks.
Quoting from [John N]:
I have a question regarding a transaction. I represent the buyer...Here's the situation:
The buyer wants to pay at the unloading port, but the seller wants payment to be by SBLC. The buyer, however, wants payment to by by irrevocable LC.
What can I do to make this transaction work? Would you suggest negotiating a DLC for both the buyer and seller? I'm stuck and would appreciate feedback. Thanks.
Hi John N
If the seller is agreeable to get paid on a CAF basis, then I think the buyer should be flexible and accept SBLC as payment terms to compensate the seller for taking this additional exposure. In any case, he can negotiate with his supplier a discount in the final price as a result of any additional costs he had to incur while opening the SBLC. I assume the buyer wants to maintain a mutually satisfactory and sound business relationship with the seller.
Regards
MB