LC Payments
Post 1 of 7
have been involved in world trade for 9 years and on alibaba for approx 7 yeras buying and selling. T/T was ok to use back then when the scammers were few on here but as we all know its full of fraud now and I would NOT send a stick of gum to anyone without being 150% certain they are real and honest. How do I do that you may ask?? I now fly and buy or else buy locally within my own country(Canada) or USA . I realize the majority of people on this site ware located in many countries and the product you require is located in countries that have the product and prices many of you need to make business worthwhile so what can you do to protect yourselves? It is a very hard question to answer these days with so much fraud on ALL B2B sites.
You asked about L/C payment. As you mentioned LC is a very time consuming and expensive paymnet vehicle to use . The majority of suppliers do NOT use them because they do NOT know what they are firts of all and they do NOT know what it takes to use them. Education is the key. As well many countries are regulated by their governments as well regarding the types of payment accepted for their banking systems but as you know L/C is very common and used worldwide in all business.
If a supplier or buyer refuses L/C payment I would not be discouraged however. In all my years I have only used them 2 times and I styill made money. However the times are different now and protection is critical. So how do you approach this payment problem then? The best way is to offer a deposit of 25% or less via TT then the balance payable upon issuance of all shipping documents paid via TT. If you are willing to gamble the deposit then its a good way to go but if not then I can only suggest fly and buy.
If you are buying thousands of $ worth of product why not fly and inspect the product yourself? Or else hire a third party inspector to verify it is there. Then you can fell more confident that the supply is real and you can TT the $ with less anxiety.
You are involved in a HIGH RISK business people so you have to learn ALL you can and be sure that you protect yourselves. LC paymnest are the safest form in the world of payment but if no one accepts them for the products you need then you have to either look at other suppliers that do or else move into another line of work if the TT paymenst scare you. I personally as I said fly and buy only now. I do NOT even send depsoits as the supplier can still scam you for it.
You asked about L/C payment. As you mentioned LC is a very time consuming and expensive paymnet vehicle to use . The majority of suppliers do NOT use them because they do NOT know what they are firts of all and they do NOT know what it takes to use them. Education is the key. As well many countries are regulated by their governments as well regarding the types of payment accepted for their banking systems but as you know L/C is very common and used worldwide in all business.
If a supplier or buyer refuses L/C payment I would not be discouraged however. In all my years I have only used them 2 times and I styill made money. However the times are different now and protection is critical. So how do you approach this payment problem then? The best way is to offer a deposit of 25% or less via TT then the balance payable upon issuance of all shipping documents paid via TT. If you are willing to gamble the deposit then its a good way to go but if not then I can only suggest fly and buy.
If you are buying thousands of $ worth of product why not fly and inspect the product yourself? Or else hire a third party inspector to verify it is there. Then you can fell more confident that the supply is real and you can TT the $ with less anxiety.
You are involved in a HIGH RISK business people so you have to learn ALL you can and be sure that you protect yourselves. LC paymnest are the safest form in the world of payment but if no one accepts them for the products you need then you have to either look at other suppliers that do or else move into another line of work if the TT paymenst scare you. I personally as I said fly and buy only now. I do NOT even send depsoits as the supplier can still scam you for it.
07 Jun 2006 17:15
Post 2 of 7
Replying to [GoldStar]:What is it you find so time consuming about L/C? I admit that L/C used to be simpler and actually now it should be known as a Letter of Credit Contract.
Ranger
Ranger
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08 Jun 2006 00:15
Post 3 of 7
Replying to [Ranger]:Hello Ranger,
Let me ask a question - supplier from Venezuela recently sent me a pro forma invoice so I can issue the L/C to him.Looking at the pro forma invoice I noticed that under supplier is his company name but under bank details is a Bank of Central Asia,address:Jalan Jendral Sudiran,Jakartar Pusat,Indonesia,Account name ASENA !?!?!
Is it only me or it really sound suspicious?Thank you.
Let me ask a question - supplier from Venezuela recently sent me a pro forma invoice so I can issue the L/C to him.Looking at the pro forma invoice I noticed that under supplier is his company name but under bank details is a Bank of Central Asia,address:Jalan Jendral Sudiran,Jakartar Pusat,Indonesia,Account name ASENA !?!?!
Is it only me or it really sound suspicious?Thank you.
26 Jan 2008 17:55
Post 4 of 7
Replying to [pako]:
Am suspicious. Is he an agent, but not saying so?
Am suspicious. Is he an agent, but not saying so?
28 Jan 2008 18:47
Post 5 of 7
Replying to [pako]:He might be a distributer or an agent , or maby his next question is to issue a TransferrableL/C...
02 Feb 2008 09:43
Post 6 of 7
Replying to [Catalyst]:Where can I find the ISBN rules? I need to check regarding the request for presentation of documents - under the L/C - The request is for: "Perforamnce Bond issued.....one copy"
Is that meen one copy as it's says or according to ISBN - original?
Thanks for your reply
Is that meen one copy as it's says or according to ISBN - original?
Thanks for your reply
02 Feb 2008 09:56
Post 7 of 7
Replying to [diligent]:
It is ISBP. Yes, one copy ALWAYS means one ORIGINAL. "In four copies" means one original and three copies. At least one original must always be submitted; unless, of course, the LC specifically says that original not required.
It is ISBP. Yes, one copy ALWAYS means one ORIGINAL. "In four copies" means one original and three copies. At least one original must always be submitted; unless, of course, the LC specifically says that original not required.
04 Feb 2008 23:03
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