African Bank LC and EU bank backing it

[Alexmorgan]

Gentlemen

I wanted to ask as im in middle of a huge deal

If there is an African bank LC issued for an African company is there away to be backed up by a European bank as another LC?

As there are some companies dont wanna deal with African banks which make the business really a struggle with them

 

[ActionMan]

mate, what do you want to achieve?

 

[daniels27]

Letter of credit? Why not just pay upfront?

But yes, in theory you can send your money to a European bank and then they issue the letter it credit. Just a question where the company is incorporated.

Another option is to go through Import Export Bank and similar government programs.

IMO, you can save the troubles and pay upfront. Do it like @jafo and load the good yourself. A plane ticket costs less than a letter of credit. And honestly if they want to fool you, none of this helps. I knew a guy at the factory where even the government backed export financing failed in the end. It is not worth the hassle.

 

[Alexmorgan]

mate, what do you want to achieve?

A deal to be done

 

[Alexmorgan]

Letter of credit? Why not just pay upfront?

But yes, in theory you can send your money to a European bank and then they issue the letter it credit. Just a question where the company is incorporated.

Another option is to go through Import Export Bank and similar government programs.

IMO, you can save the troubles and pay upfront. Do it like @jafo and load the good yourself. A plane ticket costs less than a letter of credit. And honestly if they want to fool you, none of this helps. I knew a guy at the factory where even the government backed export financing failed in the end. It is not worth the hassle.

In this deal the bank should pay to the seller

Upfront is a really problematic these days as scaming happened before

 

[brianK]

Take a flight to the seller, let him show you the goods or factory, make proper due diligence, there are companies specialized in making security and financial checks on companies worldwide, they find almost everything if there is anything. It depends on how big the deal is.

Just to mention some
https://innovis.in/
http://www.a9.dk/EN/index.htm
https://www.g-co.agency/capabilities/competitive-competitor-intelligence-agency-consulting-firm
https://www.ibiconsultancy.com/

It's worth it if we speak millions.

 

[EliasIT]

Just to mention some
https://innovis.in/
http://www.a9.dk/EN/index.htm
https://www.g-co.agency/capabilities/competitive-competitor-intelligence-agency-consulting-firm
https://www.ibiconsultancy.com/

That's some interesting consultancy firms I didn't know about they existed.

 

[CyprusLawyer101]

What you are looking for is a European bank that can accept a transferable LC from an African bank. There are banks out there that do it. It is important to know the jurisdiction in Africa and then seek for a bank that has done this before with that particular jurisdiction.
for example I know Bank ABC London has been accepting transferable LC's for African countries.

 

[daniels27]

Take a flight to the seller, let him show you the goods or factory, make proper due diligence

100% this. No instances and no anything can completely replace personal touch and trust. Du many guys lost money even with all the insurance.i Lsten to @jafo and learn from him!

If you really need a letter of credit in addition, what is the incorporation country and the country of the bank you have the check.