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Letter of credit
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Posted: Sun Sep 25, 2005 9:02 pm    Post subject: Letter of credit  

Dear Gurus,

I need your guidance on negotiating Letter of Credit with banks. I am
buying goods from various suppliers around the world, and I know banks
charge a percentage for opening a Letter of Credit. I have never opened
an LC before however I have a very good working relationship with my
banks, and I would like to try and negotiate a good LC terms in my
favor. There is no harm in trying right? I need your advice on what I
should ask for based on the best LC agreement you have seen or heard
about between a bank and a buyer?

Is it a good idea offset LCs against some assets or some capital?

Thank you,
James
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