I'm a newbie with an LC problem that hopefully, the gurus here can help solve
I have a Canadian govt contract worth $240,000 with a manufacturer requiring $98,000 prior to shipping, shipping is by airfreight and will cost $62,000. My financial partner who said he had money prior to the contract award has none. I paid the manufacturing deposit with a credit card but don't have the rest of the money needed to pay the final manufacturing payment or the shipper.
The Govt typically doesn't pay until 30 days after delivery. The Govt desperately need the product and there no other suppliers with stock. I'm trying to persuade them to make an advance so that I can pay the manufacturer and the airfreight company. The Govt is are obviously concerned that if they part with the money that they may not get the product.
A friend said a 'back to back LC on sight' might allow payment to both the manufacturer and the shipper without risk to the Govt.
Can anyone advise me on this?
Many, many thanks in advance.
