African Bank LC and EU bank backing it

[Alexmorgan]

Gentlemen

I wanted to ask as im in middle of a huge deal

If there is an African bank LC issued for an African company is there away to be backed up by a European bank as another LC?

As there are some companies dont wanna deal with African banks which make the business really a struggle with them

 

[ActionMan]

mate, what do you want to achieve?

 

[daniels27]

Letter of credit? Why not just pay upfront?

But yes, in theory you can send‌ your money to a European bank and then they issue the letter it credit. Just‍ a question where the company is incorporated.

Another option is to go through Import Export⁠ Bank and similar government programs.

IMO, you can save the troubles and pay upfront. Do⁤ it like @jafo and load the good yourself. A plane ticket costs less than a⁣ letter of credit. And honestly if they want to fool you, none of this helps.⁢ I knew a guy at the factory where even the government backed export financing failed︀ in the end. It is not worth the hassle.

 

[Alexmorgan]

A deal to‌ be done

 

[Alexmorgan]

In this deal the bank should pay to the seller

Upfront is a really problematic these︁ days as scaming happened before

 

[brianK]

Take a flight to the seller, let him show you the goods or factory, make‌ proper due diligence, there are companies specialized in making security and financial checks on companies‍ worldwide, they find almost everything if there is anything. It depends on how big the⁠ deal is.

Just to mention some
https://innovis.in/
http://www.a9.dk/EN/index.htm
https://www.g-co.agency/capabilities/competitive-competitor-intelligence-agency-consulting-firm
https://www.ibiconsultancy.com/

It's worth it if we⁤ speak millions.

 

[EliasIT]

That's some‌ interesting consultancy firms I didn't know about they existed.

 

[CyprusLawyer101]

What you are looking for is a European bank that can accept a transferable LC‌ from an African bank. There are banks out there that do it. It is important‍ to know the jurisdiction in Africa and then seek for a bank that has done⁠ this before with that particular jurisdiction.
for example I know Bank ABC London has been⁤ accepting transferable LC's for African countries.

 

[daniels27]

100% this. No instances and no anything‍ can completely replace personal touch and trust. Du many guys lost money even with all⁠ the insurance.i Lsten to @jafo and learn from him!

If you really need a letter⁤ of credit in addition, what is the incorporation country and the country of the bank⁣ you have the check.

 

[ActionMan]

the only countries that comes‌ to mind with LCs, are morroco, Egypt, South Africa, Ethiopia and Nigeria, which country are‍ you going to deal with?

anyway, Arab banks and Chinese ones are the ones to⁠ aim for in this region.

and as @brianK said, a consulting firm is your best⁤ bet, again, depending on the country, I can share a few.

 

[Martin Everson]

Do you mean you want a Back To Back LC with a European bank?⁠ Which bank in Africa will issue the LC. I maybe able to tell you if⁤ its credible or not.

In any case contact Bank Of Africa Bank in London [not⁣ EU but good enough] and see if you can open an relationship with them. Documentary⁢ credit is an attractive business for most banks.

https://bankofafricaunitedkingdom.co.uk/html/corporatebanking/index.html#tradefinancepanel

A lot of people︁ are scammed working on a huge mythical African deal so pay attention here.

Correct. Be careful and let your European bank assume the risk as I believe you intend︃ to do.

 

[brianK]

Do you want to tell us what figures we are talking⁣ about ?

 

[Alexmorgan]

80 Million USD monthly

 

[Alexmorgan]

Yes exactly

Since the east European⁠ bank is not accepting the LC from african bank directly

So to let the deal⁤ go wanted another EU bank to back the LC of african bank

Big businesses always⁣ go through BLC in this world and the bank guarantee the transaction once the deal⁢ done

I guess you understood this

 

[brianK]

Wow, that’s a huge amount of‌ money! If it were me, I’d start packing a suitcase and head out to meet‍ the people planning to send you 80M a month in person. I’d definitely reach out⁠ to some of the companies mentioned earlier in the thread and then set up a⁤ team, a lawyer, an accountant, and maybe even an early stage banker.

But honestly, I⁣ don’t buy those numbers. It’s such a typical "too good to be true" story from⁢ some parts of Africa.

When you hear 80 or even 100 million, every alarm bell︀ should go off, it just screams scam to me.

 

[ilke]

This thread is not about your opinion regarding the legitimacy︁ of @Alexmorgan's business model, but about finding banks to back an LoC.

 

[Forester]

Very true.‌ Yet I personally consider @brianK 's comment very relevant... 😉