My client's distributor in India wants to pay by way of letter of credit , but my client's bank 'Abbey' do not accept letters of credit.
He doesn't really want to open another bank account with say one of the big four.
He has asked can I accept the transactions into my client account? My first reaction is that I do not think my association would look to kindly upon this arrangement and it's probably against the rules.
Does anyone have any solutions or alternatives that I could offer my client.
Thanks
Roger
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Letter of Credit
We had a contract with company in Kuwait who insisted Letter of Credit go through National Bank of Kuwait.
This was set up for onward credit to our own bank account without opening an account with them.
Your client should try to get his distributor to pick up Letter of Credit charges which your client will have to pay but not easy to get this agreement.
Alternative is to add charges to price.
Make sure your client is aware of the extra work involved and the precise nature of the documents to be presented to allow payment.
We once had a letter of credit application for payment rejected on 14 points when we thought it was perfect.
Three of these were spelling mistakes (in other peoples documents) but luckily the client waived the errors and paid