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    5 Replies Latest reply on Dec 7, 2008 12:09 AM by loan guy

    Letter of Credit for Trade Imports

    Ceramousa Newbie

      In addition to being a domestic manufacturer, we are also an importer of product from Asia and Europe. I am interested in using L/C's for financing our trade imports. In recent years our company has been paying cash upfront, but I don't feel that is best practice due to experiences in getting sent the wrong product, damages, etc.

      Firstly, I would like some idea as to what current rates might be for the LC? We have adequate assets and equity to back any debt.

      Secondly, our current bank is only a community bank and does not have any international department. They indicated potential to route this though a correspondent bank but now I feel we are just going to add on to our cost for these services and have to always work through middlemen which can become frustrating. Is there a better way to approach this?

      Appreciate any assistance.

      Stuart.
      Controller/CFO