The Daily ITK Discussion Thread - 14th August 2012

[Fancypants]

Any ITK is reproduced in the ITK Read Only thread so that you can see at a glance what the day has given us.

cheers, I was aware that this was the idea... I shall not ask what's hidden within these 17 pages then just bored and looking for news

 

[Mr Pink]

so if we are preparing a letter of credit, that would surely come after agreeing a fee for a player....I mean you wouldn't go as far as preparing one without an agreement on a fee. I know, stupid question.

 

[Sum Monsterism]

Whats the Odds Aquatid puts something on Twitter within the hpour saying something big is happening a bid hase been lodged people lol

That'll be the 60 something million euro double deal with porto. Bulk and Martinho. You 'eard it ere first.

 

[SonicSarr]

Whats the Odds Aquatid puts something on Twitter within the hpour saying something big is happening a bid hase been lodged people lol

Zero. Aquatid is chained in my basement being tortured and interrogated. There is no chance he'll be able to escape to the 'hpour' and if he does he'll have no fingers to type with.
Is an 'hpour' some sort of ITK encoding device?
As for akqayid, I've no idea.

 

[Kendall]

Whats the Odds Aquatid puts something on Twitter within the hpour saying something big is happening a bid hase been lodged people lol

Bayern in for CHILL... we got this.

 

[noahrobert]

correct, letter of credit.

the bank i work for use them a fair bit in the sporting arena. But i think you are (correctly) refering to standard export and import LOC's. Other standard ones include FALLOC (funds at lloyds Leters of credit) for the insurance market etc. but they can be tailored. at the end of the day its just a piece of paper guaranteeing payment from one bank to the other right (right!)?

Yes, I used to work for BTR group doing all their sales export insurance using NCM Cardiff as insurer. Due to being a huge account NCM used to allow us certain discretion.

At the time Spain was in turmoil (1992) and much of the Trade needing a ILOC, or CILOC due to credit rating.

In export terms I think it's down to the contract and credit rating not just of the buyer but by the country if as a whole is not keeping up to date on import payments.

A letter of credit usually means that the sale itself is a contract but in terms of regular business import export normal businesses use standard 30/60/90 day terms.

I think letter of credit means that the bank has confirmed the funds are available and the bank writes to the seller confirming this, but not confirming the contract.

Irrevocable letter of credit means that the funds are ringfenced by the bank and the letter if credit are then part of the contract as in it can't be pulled out from.

Confirmed ILOC is when the bank guarentees the payment in event of anything going wrong and is again part of the contract.

Been about 20 years since I was involved but is definately to do with export/import payment terms.

Agreed if a letter of credit has been drawn up it would suggest to me, that a firm bid has been agreed, and this would be part of the, you can definately afford this confirmation. Wouldn't be drawn up just for a bid, as it it something that generally confirms a contract not a bid. In that business they are not drawn up for purely we may buy this, or may not. Terms are usually agreed before this stage.

Good finding and posting Wishkah!!!

 

[gazzeh]

I wish its gone a bit dry lately ! , but my text is even more excitinng than that, just trying to get clarification and permission to post before I put anything on here.

Its up and down in here.. lol feel like an emotional schizophrenic.

 

[Stoof]

It's not about "lodging" bids. It's about paying actual money.

But, as has been said, the document is being prepared. Not issued yet.

Watch this space I guess!

 

[wishkah]

From my understanding, a letter of credit is a guarantee given by a Buyer's bank to a Seller that it will get paid. The issuing financial institution/bank is then reimbursed by the Buyer (Spurs) or Spurs' bank.
Also from what I understand these are commonly used in international trade, which would suggest that we have bid for somebody from outside the UK (although as mentioned above this may not be 100% correct).

The point is that if the Seller is not paid then they can seek redress from the Issuer (Guarantor) if it is a confirmed letter of credit.

May not be entirely correct but hopefully helps!

near enough spot on,

getting away from the details of how it works, its more to do with credit ratings (as a bank's is better than a clubs) and guarantee of payment / the removal of risk.

i don't want to stoke a fire suggesting international nature and size of payment....i don't know as these things can be pretty standardised for anything.

what i would like to expand on, in another topic avec Stoof is how these are used in conjunction with invoice discounting (for either buyer or seller) which makes the merry round spin. aka we recieve money for modders, discount it with bank A, bank A is sure of funds / no risk on spurs, which allows spurs to go off and spend elsehwere. As we don't have the funds, but the bank A has covered the clubs position through the invoice discount, we can offer money we dont have yet in the form of a letter of credit, which is issued again by bank A....thus risk is removed from all angles from the clubs point of view, and we leverage Bank A's products to initiate trade.

sorry if i've made this a little hard to get heads round.

 

[sunnydelight786]

Would I be right in thinking a LOC is issued/used only for large sums of £...?

 

[tttcowan]

Would I be right in thinking a LOC is issued/used only for large sums of £...?

Fingers crossed!

 

[Gedson100]

near enough spot on,

getting away from the details of how it works, its more to do with credit ratings (as a bank's is better than a clubs) and guarantee of payment / the removal of risk.

i don't want to stoke a fire suggesting international nature and size of payment....i don't know as these things can be pretty standardised for anything.

what i would like to expand on, in another topic avec Stoof is how these are used in conjunction with invoice discounting (for either buyer or seller) which makes the merry round spin. aka we recieve money for modders, discount it with bank A, bank A is sure of funds / no risk on spurs, which allows spurs to go off and spend elsehwere. As we don't have the funds, but the bank A has covered the clubs position through the invoice discount, we can offer money we dont have yet in the form of a letter of credit, which is issued again by bank A....thus risk is removed from all angles from the clubs point of view, and we leverage Bank A's products to initiate trade.

sorry if i've made this a little hard to get heads round.

Business Accounting Module 101 available here at Spurs Community.
I quit an accountancy course once; I think we can understand why!

[great work Wishkah!]

 

[Kendall]

It's not about "lodging" bids. It's about paying actual money.

But, as has been said, the document is being prepared. Not issued yet.

Watch this space I guess!

You would've thought that a prepared letter of credit must mean a deal is some way down the track, especially when you consider the speed some of these deals are done on deadline day. Whilst not issued, you have to assume a bid was lodged, accepted and terms finalised subject to confirmation from the bank of funds.

 

[spurslenny]

At least we are safe in the hands of the Banks.......what could possibly go wrong

 

[wishkah]

Yes, I used to work for BTR group doing all their sales export insurance using NCM Cardiff as insurer. Due to being a huge account NCM used to allow us certain discretion.

At the time Spain was in turmoil (1992) and much of the Trade needing a ILOC, or CILOC due to credit rating.

In export terms I think it's down to the contract and credit rating not just of the buyer but by the country if as a whole is not keeping up to date on import payments.

A letter of credit usually means that the sale itself is a contract but in terms of regular business import export normal businesses use standard 30/60/90 day terms.

I think letter of credit means that the bank has confirmed the funds are available and the bank writes to the seller confirming this, but not confirming the contract.

Irrevocable letter of credit means that the funds are ringfenced by the bank and the letter if credit are then part of the contract as in it can't be pulled out from.

Confirmed ILOC is when the bank guarentees the payment in event of anything going wrong and is again part of the contract.

Been about 20 years since I was involved but is definately to do with export/import payment terms.

Agreed if a letter of credit has been drawn up it would suggest to me, that a firm bid has been agreed, and this would be part of the, you can definately afford this confirmation. Wouldn't be drawn up just for a bid, as it it something that generally confirms a contract not a bid. In that business they are not drawn up for purely we may buy this, or may not. Terms are usually agreed before this stage.

Good finding and posting Wishkah!!!

top knowledge there Noah, i used to work in the FX side for NBFI (which is basically the bermudan insurance market) and we issue a lot of FALLOCs and RCLOCs. To be honest i'm not required to know the nitty gritty, but do get 75% of it. since then i've tried to move towards trade finance (from fx side again) as thats where the footie is, hence why i get a bit of oversight every so often.


great post btw, better than i could have worded.

 

[Schitzophonic]

Its up and down in here.. lol feel like an emotional schizophrenic.

You rang? Oh wait.

 

[Kendall]

Would I be right in thinking a LOC is issued/used only for large sums of £...?

I would expect so. Our accounts are out in the open, so for a letter of credit to be used, you'd have to think this is meaty.

 

[Breezer]

Ok I logged out for the last 1-2hrs and now I'm lost! Wtf are you lot saying? I need a breakdown in basic English . What's being prepared? For who? And when?

 

[Kendall]

At least we are safe in the hands of the Banks.......what could possibly go wrong

Nothing, too big to fail. Worst possible scenario meaning Mr taxpayer will be paying for our new shiny striker, which at this point, I'd be happy to do!

 

[ryantegan]

that has made my winkle fizzy.

Must be a big bid