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?

Toggle signature

One-Stop Solutions​

Payment Processing ✓ | Offshore Bank Accounts ✓ | â‚¿ Crypto On-Off Ramping Services ✓ | High-Risk Industries ✓​

Let's connect: DM me on Telegram HERE

Russian, LATAM and MENA : SBP, Visa/MasterCard/JCB/MIR?/wallets available | local OTC/e-wallets available per request.​

 

[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 failed in the end. It is not worth the hassle.

Last edited: Jan 8, 2025

 

[Alexmorgan]

ActionMan said:
mate, what do you want to achieve?
Click to expand...

A deal to be done

 

[Alexmorgan]

daniels27 said:
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 failed in the end. It is not worth the hassle.
Click to expand...

In this deal the bank should pay to the seller

Upfront is a really problematic these 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.

Toggle signature
Winners never quit and quitters never win....

 

[EliasIT]

brianK said:
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/
Click to expand...

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

Toggle signature
If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.

 

[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]

brianK said:
Take a flight to the seller, let him show you the goods or factory, make proper due diligence
Click to expand...

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]

Alexmorgan said:
A deal to be done
Click to expand...

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.

Toggle signature

One-Stop Solutions​

Payment Processing ✓ | Offshore Bank Accounts ✓ | â‚¿ Crypto On-Off Ramping Services ✓ | High-Risk Industries ✓​

Let's connect: DM me on Telegram HERE

Russian, LATAM and MENA : SBP, Visa/MasterCard/JCB/MIR?/wallets available | local OTC/e-wallets available per request.​

 

[Martin Everson]

Alexmorgan said:
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?
Click to expand...

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

Alexmorgan said:
I wanted to ask as im in middle of a huge deal
Click to expand...

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

Alexmorgan said:
Upfront is a really problematic these days as scaming happened before
Click to expand...

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

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[brianK]

Alexmorgan said:
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
Click to expand...

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

Toggle signature
Winners never quit and quitters never win....

 

[Alexmorgan]

brianK said:
Do you want to tell us what figures we are talking about ?
Click to expand...

80 Million USD monthly

 

[Alexmorgan]

Martin Everson said:
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.
Click to expand...

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]

Alexmorgan said:
80 Million USD monthly
Click to expand...

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 bell should go off, it just screams scam to me.

Toggle signature
Winners never quit and quitters never win....

 

[ilke]

brianK said:
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 bell should go off, it just screams scam to me.
Click to expand...

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

 

[Forester]

ilke said:
This thread is not about your opinion regarding the legitimacy of @Alexmorgan's business model, but about finding banks to back an LoC.
Click to expand...

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

Toggle signature
--------------------------------------------------------------------------------------------------------------------------------------

I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...