Not getting paid?

[ORUNMILA]

Dear Max,

As much as iwould like to answer your question, i would suggest as a supplier, inorder to scale through all the risk and permutations and complexities of Lc processing, you employ the services of an expert!!

ofcourse there are situation were lc will be unfulfilled

other comment welcome!

Orunmila

[emseal]

Hi Orunmila,

Thanks for the response. Do you know if they charge based on the LC value? Or is it normally a flat fee?

Our bank has an international finance department that is helping us.

I am just seeing if anyone has any horror stories or situations in which they could not resolve discrepancies and they did not get paid...

Thanks so much!

-Max

[nayanrshah]

Dear Max

Definately an issuing bank may refuse payment on an L/C if they find a discrepancy and it is not resolved prior to the date of expiry?. This situation occurs when bank has doubt on applicants financial position (may change after LC issuance).

nayan

[ajoy]

I have also got this to add:

It is very rare for LCs to not get paid when documents are as per the LC , as long as you have ensured the following (as a beneficiary of an LC):
1) The LC is issued by a dependable bank.
2) In case you precieve country and or bank risk you have got the LC confirmed by your bankers ( in which case they will be liable to pay in case the Issuing bank is unable or unwillling to pay despite credit compliant documents, for any reason)
3) The LC is workable : ie you can fulfill the LC terms and conditions and submit the documents asked for. If on recieving the LC you are not sure of the documents required or find any requirements contradictory /mutually exclusive , or unable to understand any clause in the LC , make sure that you get the LC amended before shipping the goods.

That said, you will benefit from a discussion with your bankers, they should have the expertise to guide you....

Good luck...

[emseal]

Thanks Ajoy,

Great points. That's what I was looking for. If we have all the documents, and our bank confirms the L/C, I just wanted to be sure that a "smart" issuing bank couldn't somehow try to game us out of our funds.

Basically, if all the requested documents are readily attainable, and the issuing bank is reputable, L/C's are pretty much rock solid.

Much appreciated.

-Max

[KIAS]

Yes is documents are right and lc confirmed there is no risk
but if in document there is a very small error as for exemple CEM 2 in stead of CEM II IT WILL BE DISCREPENCY.
pay attention all documents carefully before shipping the goods