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    3 Replies Latest reply on Jan 25, 2013 1:38 PM by guiverman

    Import/Export Letter of Credit Assistance Needed

    steeltrader Newbie
      I need assistance with letters of credit. I recently got into the business of buying and selling steel scrap as raw materials to steel mills.

      My issue is I am going to be receiving Letters of Credit from overseas customers for large vessel loads of steel scrap I will be exporting from the USA.

      My problem is bank of america hasnt helped me much with my issue, I have not been able to find the right person to help me.

      My issue is I need to be able to transfer this letters of credit to my suppliers or have a second L/C issued using the first L/C as collateral.

      The only person I talked to said Bank of America looks at commodities like this and L/Cs as risky, however I do not understand how they can be considered risky when the L/C is Irrevocable and Confirmed by a bank in the USA, additionally the terms on the L/C call for 3rd party bonded inspections and draft surveys so I dont understand how this can be considered high risk. And on top of that all of the L/Cs are payable at sight.

      Anything that can send me in the right direction here would be helpful.