Nice to be part of this forum and hello to all of you!
I am just starting my export agency and although I have been in the import business for twenty years, I need some advice on special cases of LCs.
My client will open a transferable LC to my company (the 1st beneficiary); that LC will have 120 days payment terms.
I wish to transfer that LC to the supplier (2nd beneficiary) with at sight or 30 days payment terms.
Will my advising bank accept LC usance rapidly enough in order to pay the 2nd beneficiary in time?
Is this is usual procedure?
Thank you for your time.
Transferable L/C
Sorry Tigerfish - you cannot change the usance period when transfering an L/C. If the issuing bank/country is acceptable or you have local bank confirmation you may be able to obtain a dscount of the issuing/confirming bank acceptance and pay the supplier earlier.
Peter M
Transferable L/C
Thank you for your answer Peter, I also got the same from my bank today; they also confirmed that the currency cannot be changed.
I was hoping to simplify the operations for my client, as I handle various suppliers in various currencies and with various interest bearing payment terms, but this will not be possible at this stage.
Why make it simple when you can make it complicated?