Back to back Letter of Credit for startups?

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Back to back Letter of Credit for startups?

Post by tjdwls85 » Fri, 19 Oct 2012 8:57 pm

Thank you for viewing my post and your interest in sharing your knowledge with me.

I am currently involved in the import and export business and was wondering if anyone knew a bank that allow back to back L/Cs for start ups?

From my research so far, all local banks require 2 years of operations to be able to qualify for back to back L/C. If anyone knows a offshore bank that would allow me to issue a letter of credit based on the letter of credit issued to me or would give me a loan based on that letter credit, I would really appreciate it if you could share it with me.

Thank you for reading this post.

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Post by taxico » Sat, 20 Oct 2012 9:03 pm

do you have enough money in the bank?

my old man taught me credit was something i had to earn... guess it doesn't apply any more these days.

i'd like to get me some easy company loans from a bank too!

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Post by Strong Eagle » Sat, 20 Oct 2012 9:50 pm

Your problem is that back to back letters of credit are ripe for scam if two sham companies collude. I back your letter, you back mine, the bank pays out and we disappear.

Don't know how to get around that.

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