Letter of credit

LNNL

Hello,

I'm attempting to set up as a fruit buyer/seller intermediary which would involve organising the transferal of ownership between fruit producers and fruit wholesalers. However, the main problem is that most are unwilling to accept a letter of credit. Is this generally the case with suppliers? Has anyone experience of acting as an intermediary and using letters of credit?

dh0661

I'm not trying to burst your bubble here, but --- have the likes of Fyffes and Keelings got this sewn up?

LNNL

Well okay then, forgetting the fruit trade for a bit, are letters of credit generally only agreed by producers/wholesalers who have a long standing relationship and supported by banks when there is a very good credit history?

Southsider1

I'm afraid you'll have problems with this one. The banks are VERY reluctant to issue letters of credit and credit/bank guarantees at the moment as are some companies to accept them. Unfortunately at the present time cash is king! If you're going to proceed you'll have to show some cause by paying cash in the initial stages until a payment history is built up.

LNNL

Thanks for the reply Southsider1, that's what I wanted to know.

Southsider1

Hi,

If you need any further help give ma a PM and I'll see what I can do,

S.

LNNL

Thanks, I appreciate that!