I'm new to this, so please forgive if I ask silly questions.
If I'm a middle man who plan to receive the transferable LC and transfer to the Seller and
the Real buyer asked for proof of product (POP), after producing his Proof of Funds (POF..MT799).
Can POF and POP work for me in this setting?
PS: I'm also looking for a mentor to help with my first trade - skype: crb_london
Transferable LC with Middle man & POF/POP
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cristiand969
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You can consider these...
Dear Toni,
There is absolutely unnecesarry such proofs (POP and POF) from my point of view and I expain you shortly as to why in credit operations these are completely useless:
1. Proof of funds? Why should it be produced as long as you will have a documentary credit (i.e an undertaking of the issuing bank that will pay you against compliant documents). I am sure you are more confortable with a bank undertaking rather than a "proof" of buyer that he has money. Please consider that buyer may have money today but tomorrow may not.....
2. Proof of product: By opening an LC the Buyer is sure that he will not pay seller unless documents will be presented to his bank (which is more than a a proof of products i.e proof of delivery to buyer). However I guess that buyer may want to be sure that he will not loose money (commissions, fees) with LC opening, nor having the amount blocked under the letter of credit or paying fees for a facility and seller will not deliver goods at all. Well ,buyer can stipulate in the underlying contract penalties in case of failure to deliver goods.
Brgds
Cristian
There is absolutely unnecesarry such proofs (POP and POF) from my point of view and I expain you shortly as to why in credit operations these are completely useless:
1. Proof of funds? Why should it be produced as long as you will have a documentary credit (i.e an undertaking of the issuing bank that will pay you against compliant documents). I am sure you are more confortable with a bank undertaking rather than a "proof" of buyer that he has money. Please consider that buyer may have money today but tomorrow may not.....
2. Proof of product: By opening an LC the Buyer is sure that he will not pay seller unless documents will be presented to his bank (which is more than a a proof of products i.e proof of delivery to buyer). However I guess that buyer may want to be sure that he will not loose money (commissions, fees) with LC opening, nor having the amount blocked under the letter of credit or paying fees for a facility and seller will not deliver goods at all. Well ,buyer can stipulate in the underlying contract penalties in case of failure to deliver goods.
Brgds
Cristian
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berry
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that was educational
that was educational dear cristian. i had no idea of these two things. thanks! but im unsure why the buyer would ask for the proof of product and send a 799 mentioning proof of fund while there is a LC. i guess the bank that has send the 799 has also issued the LC. why the bank would let that do? is it really a LC that we are dealing with?
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cristiand969
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confused
Dear berry
Do you happen to have two usernames : one for educational questions and one for real ones, at least this is what your message conveys.... You don't need to be under cover when a question puzzles you. This happens to everybody at least one time although can be one time a day and this is why this forum was created (Thanks admin for your time and care to bring us together and useful information). My response to your question "WHY"? is that: Due to the lack of knowledge and creativeness the parties are experiencing or due to fear of fraud... or anything else.... if you want a straight reply it is better to contact that buyer.
By the way, it is quite difficult to answer a riddle form different inquirer perspective.... If you know what I am referring to... I am not sure I will spend my time in the future for some inquirers. Therefore my advice: go for the third username :lol:
Do you happen to have two usernames : one for educational questions and one for real ones, at least this is what your message conveys.... You don't need to be under cover when a question puzzles you. This happens to everybody at least one time although can be one time a day and this is why this forum was created (Thanks admin for your time and care to bring us together and useful information). My response to your question "WHY"? is that: Due to the lack of knowledge and creativeness the parties are experiencing or due to fear of fraud... or anything else.... if you want a straight reply it is better to contact that buyer.
By the way, it is quite difficult to answer a riddle form different inquirer perspective.... If you know what I am referring to... I am not sure I will spend my time in the future for some inquirers. Therefore my advice: go for the third username :lol:
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berry
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007
dear cris,
i read my post several times. and.... english is not my language and i learn it from movies and try to apply. that was education is a line from BTF2. i hope you will meet tony someday and your confusion will get away. berry is one though it is not my real name but i post by this name. if evrybody here feel that its a crime then please dont answer to my questions and i will quit
i read my post several times. and.... english is not my language and i learn it from movies and try to apply. that was education is a line from BTF2. i hope you will meet tony someday and your confusion will get away. berry is one though it is not my real name but i post by this name. if evrybody here feel that its a crime then please dont answer to my questions and i will quit
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cristiand969
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Berry
Dear Berry,
Sorry if I made a mistake but that was what I thought reading several times your message. And I wish to appologize for that mistake. You should not get away from here even if someone wishes to blame you because it will be his personal opinion and nothing more. And one more thing .. your topics have been always very enjoyable from my perspective and pure personal opinion. So please don't take it too hard just because someone (like me) has made a confusion. After all, we all have doubts in many areas and this forum is one of the answers to them.
I wish you a very long staying here.
Sorry if I made a mistake but that was what I thought reading several times your message. And I wish to appologize for that mistake. You should not get away from here even if someone wishes to blame you because it will be his personal opinion and nothing more. And one more thing .. your topics have been always very enjoyable from my perspective and pure personal opinion. So please don't take it too hard just because someone (like me) has made a confusion. After all, we all have doubts in many areas and this forum is one of the answers to them.
I wish you a very long staying here.