Guidance required on LC

Knowledge resource 610 views 2 replies

 

Hi,  I am an small new exporter from India.... i am operating an order through one of my Indian agent who deals with Chinese...  i opt for a 100% sight LC but they offer for a back 2 back LC or transferable LC without divisible clause....

I need your valuable guidance to know whether the above LC's are safe and eligible for taking a bank loan against to it .

Wish to know any other valuable inputs on this

 

thanks

suresh.ss


Replies (2)

a back to back LC means that your exported goods would get sold to next country or party, and your payment realization would be subject to payment realization of 3rd party to 2nd party.

if the LC is open for negotiation, then it can be discounted by the bank.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register