Back to Back Letters of Credit

csceyl · Post by **csceyl** » Thu Mar 21, 2019 10:38 am

Hi,

I'm new to this board and this is my first post. I have a quick question about Back to Back LCs for all you experts out there.

Basically, I'm running a small scale commodity trading firm and up until now we have only exported commodities from where we are based. Let's call it Country C. We are based in Country C and we have been exporting commodity originating from Country C out of Country C to worldwide. No problem. Simple / Non-Complicated Sight and Usance LCs.

However, imagine circumstances have changed and I want to expand and do business more globally. I.e. If I'm still based in Country C, I want to Buy Cargo in Country A and Sell to Country B, how do I go about accomplishing that if I don't have an office or presence in exporting country; Country A? How can documents such as COO be produced remotely without the ability to get in contact with relevant Bureaus in Country A? Does it not make the process challenging?

For a fact I know, this is pretty much what big commodity trading firms do but they have more personnel, regional offices and more resources. How does a small firm accomplish this?