Many thanks
Quoting from [AdrianH]:
Is anyone able to explain the difference between a Documentary Letter of Credit (DLC) and a Fully Funded Documentary Letter of Credit (FFDLC). My Bank says they have never heard of FFDLC but it is quoted extensively in Alibaba buy/sell leads. What does 'Fully Funded' mean exactly?
Many thanks
FFDLC cover the whole value of the contract. Who is so crazy to block his money for a long term????
Auto Revolving DLC Confirmed in Top Bank,payable 100% at sight against shipping documents is the best
Dear Julia,
Thank you very much for your explanation of FFDLC. I have another question relating to this which maybe you are able to answer.
How does the FFDLC work in terms of funds being paid from buyer to seller? Is the amount of money for the whole contract ring fenced by the buyer's bank and released each month as and when shipments occur OR is the whole amount payable up front before any shipments occur?
Many thanks for your asistance.
Adrian
I am dealing with a seller that is asking for a FFDLC + 1 month BG. They stated that they will send over a performance bond AFTER we activate the LC. Does anybody know if this is normal procedure
Quoting from [RSUH]:
Replying to [AdrianH]
I am dealing with a seller that is asking for a FFDLC + 1 month BG. They stated that they will send over a performance bond AFTER we activate the LC. Does anybody know if this is normal procedure
First off let me state that I wouldnt do it. Second let me say you had better have an iron clad contract that will hold up in the sellers country or you could be facing a total loss, and then I would require that they provide the preformance bond before any BG.
Ranger
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Quoting from [iulianap]:Quoting from [AdrianH]:
Is anyone able to explain the difference between a Documentary Letter of Credit (DLC) and a Fully Funded Documentary Letter of Credit (FFDLC). My Bank says they have never heard of FFDLC but it is quoted extensively in Alibaba buy/sell leads. What does 'Fully Funded' mean exactly?
Many thanks
FFDLC cover the whole value of the contract. Who is so crazy to block his money for a long term????Auto Revolving DLC Confirmed in Top Bank,payable 100% at sight against shipping documents is the best