I'm new to the exporting scene and intend to export a natural resource from southern Africa to western countries (preferably the US). There is a lot of political instability in the country I will be exporting from, but nevertheless I have access to the resources and can get things done. The problem is that I currently have insufficient capital and collateral to secure a loan. I am hoping to get advice on how to obtain letters of credit from a company that uses the resources I have access to; like Philip Morris….

I would also appreciate clarification on one last thing. Upon receiving a letter of credit, will my bank issue me working capital to get things done – or will I only get access to the money after the goods are delivered to the company that issued the letter of credit. Thanks….. (hopefully someone will answer)

1. L/C are opened to you by your customer generally for a specific $ amount and specific orders for a specific delivery dates.and guarantee payment by the customer to you if you comply to the terms of the L/C. You can than use this as collateral to obtain financing to buy materials needed. Talk to a large commerical bank (HSBC, KEY Bank) and they can steer to their international operations staff to help you.