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Our new buyers from Dubai/ Sharjah want 60 days open credit & require materials in 20 Mt. of full FCL 20Ft." So how can I be sure whether he is genuine or not? What is the procedure to enquire about him or requirement of bank documents for open credit.
Free Member, Joined :05/02/2008
No of Topics Posted : 1
Reply/Comments : 0
I'm based in Sharjah and would'nt suggest that you start offering 60 days open credit for a new buyer.Ask for 30-50% downpayment and send documents through bank to collect the balance payment after shipping.(Cash against documents)
Free Member, Joined :03/03/2009
No of Topics Posted : 0
Reply/Comments : 1
looks like this one is not an experienced buyer as 20' FCL only able to hold 16.8Mt. you can't do much to verify as Dubai does not provide credit bureau services. if you want to gamble, good luck!
Free Member, Joined :03/03/2008
No of Topics Posted : 0
Reply/Comments : 2
Pls contact immediately ECGC [Export Credit Guaratee Corporation]with your buyer's order or L/C.
Free Member, Joined :12/30/2008
No of Topics Posted : 1
Reply/Comments : 2
Hi Manish,
Their are many ways one of them you can try is....you can ask for confirm LC, means opening bank will have to go for one more step of confirmation with any of the reputed international bank like bank of england etc. Which will have some extra charge for buyer but you are double safe as far as LC is concern.
Best Regards /
Nimesh Batavia.
Free Member, Joined :02/07/2009
No of Topics Posted : 0
Reply/Comments : 1
You want to do business with peace of mind ? Then don't agree for open credit. Open credit is you send the goods without receiving any payment, believing that the buyer will make the payment within the stipulated 60 days. Suppose he takes the goods, which you know are as per the sales contract, and then complains that you have sent him rubbish for which he refuses to pay you ! What do you do then ? You have no hold on the buyer.
If overseas payments are not received within a certain period, as specified by the Reserve Bank of India, you will be liable to be criminally prosecuted for trying to cheat the Govt. and ( apart from being Black Listed ) you will have to face inquiries from various Govt. Depts. like the Tax, Customs, Excise, etc.
Do you require these hassles ?
You can always ask your Bank to get a confidential report of the buyer from his bank. But, this will not ensure your payment. You can also get ECGC cover for this buyer and the bank can set credit limits for this buyer. This will give you some cover. But it is better to get a 100% Letter of Credit, irrevocable & confirmed, payable AT SIGHT or 30 / 60 / 90 days from SIGHT. In this case you will be quite, but still not completely safe. To be 100% safe, would be to get 100% advance payment through your Bank !
Free Member, Joined :05/15/2002
No of Topics Posted : 0
Reply/Comments : 2
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