Guest Posted October 26, 2005 Report Share Posted October 26, 2005 3) Fall in "love". ( loose some money) 2) Buy gems. ( loose some money) 1) Buy a bar. ( loose a lot of money) -1 run out of money, -2 go back to farangland to make money, and then -3 repeat the process as often as needed to learn your " lesson" Link to comment Share on other sites More sharing options...
dean Posted October 26, 2005 Report Share Posted October 26, 2005 I guess that, if a bar owed its suppliers money, it would be pretty hard to put a lien on the business. That must make it fun to collect debts in LOS. Link to comment Share on other sites More sharing options...
.. Posted October 26, 2005 Report Share Posted October 26, 2005 Heeeheeheee. You really have no clue how biz is done in Asia, do ya? Never is unsecured credit extended. I sell multi-thousand dollar (close to a million) industrial machines. But the deal is the same. Either $$ up front or a irrevocable letter of credit, which means that a reputable bank holds the $$ in escrow awaiting the release from the buyer (which has been negotiated up front). For a small biz like a bar, it is ALWAYS cash on delivery for supplies! Cheers, SD Link to comment Share on other sites More sharing options...
BelgianBoy Posted October 26, 2005 Report Share Posted October 26, 2005 suadum said:irrevocable letter of credit, which means that a reputable bank holds the $$ in escrow awaiting the release from the buyer (which has been negotiated up front). With all respect, that is not a letter of credit...... perhaps you mean a letter of garantee ? BB Link to comment Share on other sites More sharing options...
.. Posted October 26, 2005 Report Share Posted October 26, 2005 Well, we in industry call them letters of credit (LoC). What finance people call them is another matter. Basically, it means that party A (the buyer) has deposited money to cover the contract into an agreed upon bank in an escrow account. Party B (the seller) has to deliver the goods to A's satisfaction, as negotiated before and is part of the LoC deal. When the goods are delivered and signed off, then the money is released into B's account. A cannot, however, get the money back from the bank (i.e., cancel the deal) without a court order which is VERY hard to get -- the money is spent. Hence the "irrevocable" part of the deal. Cheers, SD Link to comment Share on other sites More sharing options...
Nervous_Dog Posted October 26, 2005 Report Share Posted October 26, 2005 BB - called a loc letter of credit in most of Asia that I know of, we also use them almost weekly, including "Rolling" LoC's. DOG Link to comment Share on other sites More sharing options...
Hugh_Hoy Posted October 26, 2005 Report Share Posted October 26, 2005 suadum said:Well, we in industry call them letters of credit (LoC). What finance people call them is another matter. Yep, SD, you're right. In your case "LC's" are quite common for international biz. Quite a number of different kinds and quite a number of variables can come into play. Bankers call them "LC's" also. A "guarantee" might just be a financial institution "guaranteeing" to fund the LC. In an LC arrangement, a bank acts somewhat as typical "escrow" company does in the US. If LC's are done right, an importer or exporter can get screwed big time. They really need an expert banker to discuss the terms and conditions. HH Link to comment Share on other sites More sharing options...
BelgianBoy Posted October 26, 2005 Report Share Posted October 26, 2005 SD, Hummm.... this thread is getting sidetracked now First you quote that you depend on your customer to release the payment in your first post suadum said:Never is unsecured credit extended. I sell multi-thousand dollar (close to a million) industrial machines. But the deal is the same. Either $$ up front or a irrevocable letter of credit, which means that a reputable bank holds the $$ in escrow awaiting the release from the buyer (which has been negotiated up front) , so that effectively you still depend on the goodwill of your customer to have the funds released. Bad business sense IMO.Then you post more on the same : suadum said:Well, we in industry call them letters of credit (LoC). What finance people call them is another matter. Basically, it means that party A (the buyer) has deposited money to cover the contract into an agreed upon bank in an escrow account. Party B (the seller) has to deliver the goods to A's satisfaction, as negotiated before and is part of the LoC deal. When the goods are delivered and signed off, then the money is released into B's account. A cannot, however, get the money back from the bank (i.e., cancel the deal) without a court order which is VERY hard to get -- the money is spent. Hence the "irrevocable" part of the deal. Yes, that is an l/c but with badly negotiated terms then.I am also aware what l/c's are, as I handle about 400 of them every year..... and I do teach a course at my local chamber of commerce as well. My customer instructs his bank to open an irrevocable and confirmed letter of credit to my bank. And BTW, depending on his negotiating skills with his bank, credit lines, etc... he does not need to deposit the full amount of the value, as long as the l/c is irrevocable. But when I ship, I negotiate the documents at my bank and I am getting paid at the counters of my bank, that is what irrevocable letter of credit really means. Not depending on the customer. BB Link to comment Share on other sites More sharing options...
STFORME Posted October 26, 2005 Report Share Posted October 26, 2005 Yeah, I know, this is my first posting here, but really feel the need to set the record straight. Being in a business that deals with many of the bars, I know most of the farang owners. Bottom line is: TC is a good guy and would never intentionaly screw anyone on a business deal. Boss Hog, on the other hand is a useless piece of shit that will rip off and screw anyone he can. I wouldn't trust him any further then I could throw him. Most of the guys who posted here know this asshole only because maybe he bought them a drink at Big Dogs. His interview with Stickman several months ago was the biggest pack of lies I have yet to see in my 5 years in LOS. It is one thing to be a hard nose businessman. Its another to lie, cheat and try to fuck over everyone you come in contact with. Yes BH has lots of money, but as Ted Turner said several years ago,"when a guy gets very rich, either he becomes a really nice guy, or a really big asshole." To know BH is to hate him! Why hasn't someone taken him out yet? I believe there is a line of people that extends to Phuket waiting their turn. Link to comment Share on other sites More sharing options...
.. Posted October 26, 2005 Report Share Posted October 26, 2005 Chuck, good to hear from you! We must get together for some Blacks one day soon. BB: Well, you do in a sense depend upon the customer to release the money. When talking high $$ capital equipment as is the game I am in, they generally require a "proof of operation" or "acceptance test" which is some mutually agreeded upon task that the machine must do before delivery is accepted. The customer signs off that this is complete and the bank releases the money. That is to protect the customer from me selling them a crap machine. Completely acceptable. Now they could refuse to sign even if the machine passes the acceptance test. It has happened once in 10 years and was resolved without going to court. But what is in it for them? The money is gone -- they have in effect already paid for the machine. The bank will NOT give it back, hence the irrevocable part. So there is no incentive for any buyer to do that and they would be in a very poor position should the case come up in a court (as long as the seller can prove that the machine indeed passed the acceptance test as written in the sales contract). Cheers, SD Link to comment Share on other sites More sharing options...
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