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Irrevocable Transferable Letter Of Credit

The law of the sea.

Irrevocable Transferable Letter Of Credit

Postby Padruig » Mon Nov 28, 2016 4:49 pm

Hi David,

Jose here from Caroline Springs, Melbourne VIC, Australia.

I purchased your ebook TWYII several months back but since i was working full time, i did not have time to act on it.

I am now slowing trying to get into import/export(amonth other things) but the bigger stumbling blocks i am encountering is finding a good bank that will assist me with finance i.e. irrevocable transferable letter of credit.

Can you recommend a bank/financial institution that is cost effective and reliable when it comes to irrevocable transferable letter of credit? One bank i spoke on the phone repeatly advised that they don't deal in such things. Hard to belive though. Another bank advised they  do deal with it but quoted me around $1200 in fees for a $5K import. One of their consultants advised that i needed to be extremely careful with terms and condition on l/c else problems will occur.

Initially, I'd like to import some products and be an intermediary. But would also like to consider being an intermediary for AUS products to sell the world. I just need to get my feet wet in this. I have been unemployed in the last 5 weeks and seriously looking for experience and opportunities to get into being a true effective intermediary.

Thank you and have a great day!

Jose
Padruig
 
Posts: 44
Joined: Tue Jan 21, 2014 2:53 am

Irrevocable Transferable Letter Of Credit

Postby Jonathan » Fri Dec 02, 2016 12:08 am



Dear Jose-

You've jumped ahead - you are dealing in said  matters incorrectly-

All Australian  banks are top 100 world ranked banks- Now understand  this YOU ARE NOT OPENING A CREDIT- and ALL MAIN AUSTRALIAN BANKS ARE UCP600 compliance- Now having said that , naturally bank will not help with advice and that getting some junior staff to answer such question is a waste of time-

YOU bank is an advising bank- You get the DLC issued to your account - then transfer the portion to the supplier - Hence you are not OPENING a credit , you are ADVISING  a credit-

THUS THE TERMS OF THE CREDIT HAS TO BE MET - ONCE MET , THE DIFFERENCE BETWEEN THE SELL AND BUY PRICE IS YOUR COMMISSiON-

YOUR bank  IS THE ADVISNG BANK AND NOTHING MORE(UNLESS YOU GET A CONFIRMED CREDIT-)

Now since all Australian bank are are UCP600 compliant- You find the supplier , secure the quote  , make an offer to and end buyer , get his financial instrument into your bank, as a transferable instrument, and transfer the buyer price to the Supplier-in where the cost of transfer is made to the account of the end buyer-

SINCE ITS NOT YOUR MONEY OR YOUR BANKS MONEY , THEN THEY WILL SIMPLY ADVISE YOU THAT A DLC IS IN YOUR ACCOUNT AWAITING YOUR FURTHER INSTRUCTIONS-

Then they will assist you accordingly-and not before-

VERY SIMPLE- IF YOU SAY TO YOUR BANK "YOU WANT TO OPEN A DLC"  THATS DIFFERENT - YOU ARE USING  YOUR MONEY HENCE NORMAL CREDIT APPROVALS , FEE'S AND CHARGES APPLY- INTERMEDIARIES DO NOT USE THEIR OWN MONEY-and the process is risky as well-

If you want to BUY goods and resell them using your money - then that has nothing to do with the publication advice, because the advise if for Intermediary use-

That's more of a wholesale operation- You buy goods , store it in your warehouse and wait to source buyers- you take the risks. You have possession and title  of GOODS- intermediaries only deal in the  "title" of goods- Banks want to see title of  goods as it appears on the DLC-

I Like Westpac. They have a informative website and seem to be very professional in the way they handle things- You could open a overseas account like i have , if you ARE ever visitng another country - HBSC, Bank of China, Banco di Lavoro Italy , Germany ..etc..etc..

The  Intermediary business is new to Australians - Perhaps 30/40 year  of activities - compared with Europe and well informed intermediaries in  Australia  as far and few - most are flawed misinformed traders-Our bank have not seen many such activities and really know nothing or very little  of such business, because banks deal in financial instruments and  really cannot advise matters beyond such-Ask a bank about a home loan and the person at the front desk has all the answers- Ask the same about Import/ export procedures - They will have no answers and give you a nuber to some remote "export ' department- in where a single clerk is frustrated in giving such answer daily to such intermediaries- tell the same  person you are BHP Billiton and he'll jump to assist you- A well informed intermediary knows everything about a banks business  , but a bank know very little of the overall intermediary process-Most Lawyers know very little about banking and the intermediary process but they are good at prodciung contracts..etc..etc and intermediary has to knwo a wide range of things about the whole process-

You have not read the book  nor practised the application- going to bank and lawyers and other related professionals is a waste of time- You purchase a study and practice application you need to practice trading- for many months of years.

Even many Australian suppliers  don't know that  much about the true  intermediary applications- so getting a quote for much wanted goods is not going to be easy anyway-

But in Mid 2009 FTN exporting  "ITSI" Publication is going to be released By Gower Publishing  U.K - this publications(based of the same publication you purchased)   will finally open the eyes of suppliers, bankers and other intermediaries  world wide to the nature of this business-

So for the next six month study the material , start asking for quotes,  in  getting  yourself ready to trade as a well informed intermediary-

You need to obtain experience-

You get the DLC is youer ADVISING bank as apply  the terms of  credit as defined in your contract with the end buyer- Once you have a  DLC you bank will inform you and wait for your instructions- thus  you have a long way to go before such a status is reached- you can't instruct you bank if you don't know what you are doing- hence you need to practice first-

I hope the above is clear- It sounds a bit harsh but good intent prevails in giving you the above insight-as i try and help Australian traders more so than others- Don't use this open  site Jose, please refer any more questions to my ftnexporting email is your best option-

Regards

Davide Papa

www.ftnexporting.com

www.ftnx.9f.com

www.itsi.itgo.com

Melbourne Carlton  
Jonathan
 
Posts: 45
Joined: Thu Jan 02, 2014 7:40 pm

Irrevocable Transferable Letter Of Credit

Postby Jonas » Mon Dec 05, 2016 9:40 am

Hi David,

Jose here from Caroline Springs, Melbourne VIC, Australia.

I purchased your ebook TWYII several months back but since i was working full time, i did not have time to act on it.

I am now slowing trying to get into import/export(amonth other things) but the bigger stumbling blocks i am encountering is finding a good bank that will assist me with finance i.e. irrevocable transferable letter of credit.

Can you recommend a bank/financial institution that is cost effective and reliable when it comes to irrevocable transferable letter of credit? One bank i spoke on the phone repeatly advised that they don't deal in such things. Hard to belive though. Another bank advised they  do deal with it but quoted me around $1200 in fees for a $5K import. One of their consultants advised that i needed to be extremely careful with terms and condition on l/c else problems will occur.

Initially, I'd like to import some products and be an intermediary. But would also like to consider being an intermediary for AUS products to sell the world. I just need to get my feet wet in this. I have been unemployed in the last 5 weeks and seriously looking for experience and opportunities to get into being a true effective intermediary.

Thank you and have a great day!

Jose
Jonas
 
Posts: 35
Joined: Mon Feb 24, 2014 10:34 am


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