Letter of credit

What exactly do you mean by negotiate a good Letter of Credit terms? and I have a very good working relationship with my banks? How many? Surely the good terms should be negotiated with your supplier your bank(s) will have a set fee for opening a letter of credit (irrevocable most likely) if they think you are a good risk. The very reason that you are asking here in a public forum instead of your Banks makes me think you are a little dillusioned as to your importance to your BANKS!! (and a hotmail address to boot - most common!)

In message , snipped-for-privacy@hotmail.com writes

Dont be trying to find the best deal until you have got a deal.

Find out what terms your suppliers will accept, i.e. how many days credit and if they want to use Bills of Exchange against sight,. Acceptance etc.,. Then go to your main business bank and discuss terms. The amounts involved and their perceived risk will determine their requirements for security etc.,

If you already have an overdraft facility then the LoC facility might just be consolidated within it.

Finally, for those not already dealing with commercial paper there are more scams about LoCs than there are real LoCs so be very very sure that the deal is real before going any further.