Transaction advice needed

[nramjanali]

Hello Gentlemen,

I have a offshore company in Seychelles and because of the current pandemic, a new business opportunity has emerged.

A client from China wants to buy certain product and we are able to source it from UAE.

I already hold a private bank account in Dubai with sufficient funds to purchase the goods on behalf of my client and I have a friend in UAE that has a export licence.

Now the questions start to rise.

Since I already have the funds in UAE and I have a trusted friend that holds a export licence, can I ask the client to issue a letter of credit for my offshore company in Seychelles? The fact of the product is being exported by a different company, in a different country will not create any problem in clearing the LC?

Thanks in advance.

 

[JohnLocke]

This sounds like a valid but complicated way of doing it, it may be the only way for you to handle this deal so it's worth it. I wonder if someone with more knowledge in the UAE has a solution or can suggest something better.

 

[CaptK]

Im guessing you dont want to register a company and you dont trust your friend to take the payment or the business.

It can be done the way you want but its quite convoluted.
I have done it in the past for other clients and charged 5%.
How much of a percentage of the overall transaction are you willing to pay as a fee?

 

[nramjanali]

Thank you for your answers @Admin and @CaptK .

@CaptK indeed. I believe I don't have enought time to register the company and the schedule is very tight.

We are talking about a 7 figure transaction, so I want to adopt the safest option. My idea is to buy the goods only after the client opens the LC.

Regarding the fee, I agreed with my friend 2% of the transaction amount to use his company licence. But has I told you, I want my offshore company to be the Beneficiary of the LC.

If there is any other safe option, I am willing to pay up to 5%.

 

[CaptK]

Where is your offshore company registered.

 

[nramjanali]

The company is registered in Seychelles. Should I also ask my bank about this transaction or they might think this is a little dodgy? I don't want to be misinterpreted by them.

 

[CaptK]

The company is registered in Seychelles. Should I also ask my bank about this transaction or they might think this is a little dodgy? I don't want to be misinterpreted by them.

Yes. Speak to them first. If they cant help you then PM me.

 

[nramjanali]

@CaptK I will. Tomorrow I will revert back.

Thanks.