Is it posible to split a transferable Letter of credit to a broker and supplier ?
No N asked:
I want to know if it is possible to split a transferable L/c to a broker and Supplier without buyer knowing how much broker is making.. split as in broker will take $20 while supplier take $200.. and supplier want the l/c to be transferable so how would i get a cut throu the transferable l/c and yes supplier is offering a 2% performance bond to the buyer.
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I want to know if it is possible to split a transferable L/c to a broker and Supplier without buyer knowing how much broker is making.. split as in broker will take $20 while supplier take $200.. and supplier want the l/c to be transferable so how would i get a cut throu the transferable l/c and yes supplier is offering a 2% performance bond to the buyer.
May 6th, 2010 at 6:15 pm
If I understand your question correctly, I think you would simply need to draft a contract between the broker and the supplier, detailing:
How much the broker will earn when the transaction is completed and the funds are available in the supplier’s bank account.
When the supplier expects to make delivery and receive payment on the L/C instrument, and how many days after receiving the funds that the supplier must compensate the broker.
This would be the easiest way of doing things - via contract. Captain Credit