Should Proz.com offer the "letter of credit" service like banks?
Thread poster: Hang Nguyen-Padfield
Hang Nguyen-Padfield  Identity Verified
United States
Local time: 08:01
English to Vietnamese
+ ...
Mar 30, 2006

It would be a good idea. I will be the first one who use that service. I don't know if it is feasible, though What do you think?

Letter of credit is often used in international transactions to ensure that payment will be received. Due to the nature of internation dealings such as distance, differing laws in each country, and difficulty in knowing each party personally the use of letters of credit has become a very important aspect of international trade. The bank also acts on behalf of the buyer (agencies, direct clients) (holder of letter of credit) where the supplier (translators) will not be paid until the supplier confirms to the bank that the goods have been shipped (translation has been submitted, provided that certain requirements are met?).

Source: dictionary.com


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RobinB  Identity Verified
Germany
Local time: 14:01
German to English
ProZ is not a bank Mar 30, 2006

Obtaining the banking licence necessary to offer this sort of documentary credit is incredibly complicated and expensive and, I think, utterly unnecessary. Neither are L/Cs generally available for services.

What next? Banks offering translation services?

If you're concerned about payment in international transactions, you can always sell your receivables (factoring), provided the amounts involved are sufficiently interesting. If that's not possible, choose your overseas clients with care and use a credit rating agency to get an impression of their financial soundness.


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Gerard Michael Burns
Paraguay
Local time: 08:01
Spanish to English
+ ...
If they do it, I'lll finally join Mar 30, 2006

Hang Nguyen-Padfield wrote:

It would be a good idea. I will be the first one who use that service. I don't know if it is feasible, though What do you think?

Letter of credit is often used in international transactions to ensure that payment will be received. Due to the nature of internation dealings such as distance, differing laws in each country, and difficulty in knowing each party personally the use of letters of credit has become a very important aspect of international trade....

Source: dictionary.com

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Robin is right that it would be difficult for ProZ to do this, at least directly, but it could be done through a 3d party as long as precautions are taken.
There are difficulties with the existing payment services such as PayPal, which doesn't offer service in many countries: such as the one I am in, for instance, and banks here charge $80 for a bank transfer of any size, making that system impractical for most jobs.

Naturally, if I were moving tens of thousands of dollars at a time, or millions, like money-launderers, there would be institutions falling at my feet to offer banking services at reasonable rates.

If they were to offer a service like this, I would finally join ProZ.


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Roomy Naqvy  Identity Verified
India
Local time: 17:31
English to Hindi
+ ...
letter of credit... Mar 30, 2006

Gerard Michael Burns wrote:

Hang Nguyen-Padfield wrote:

It would be a good idea. I will be the first one who use that service. I don't know if it is feasible, though What do you think?

Letter of credit is often used in international transactions to ensure that payment will be received. Due to the nature of internation dealings such as distance, differing laws in each country, and difficulty in knowing each party personally the use of letters of credit has become a very important aspect of international trade....

Source: dictionary.com

---------------------------------------------------

Robin is right that it would be difficult for ProZ to do this, at least directly, but it could be done through a 3d party as long as precautions are taken.
There are difficulties with the existing payment services such as PayPal, which doesn't offer service in many countries: such as the one I am in, for instance, and banks here charge $80 for a bank transfer of any size, making that system impractical for most jobs.

Naturally, if I were moving tens of thousands of dollars at a time, or millions, like money-launderers, there would be institutions falling at my feet to offer banking services at reasonable rates.

If they were to offer a service like this, I would finally join ProZ.


Letter of Credit should be a tough thing for ProZ, atleast in the short term.

I don't think offering such a service should be the reason for taking out a paid membership. I live in India and my paid membership expires in Jan 2009. It has been paid three years in advance and I have seen visible gains from taking out this membership.

Don't you have Moneybookers [www.moneybookers.com] for Paraguay?

Roomy


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Vladimir Dubisskiy  Identity Verified
United States
Local time: 07:01
English to Russian
+ ...
my strong believe Mar 30, 2006

That Proz will never be involved into anything like 'issuing letter of credits'. It has nothing to do with languages / translations (except for probably translation of this phrase)
Wrong address for the proposal. There is no trade here so far)

Hang Nguyen-Padfield wrote:

It would be a good idea.

--- the use of letters of credit has become a very important aspect of international trade....


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Dina Abdo  Identity Verified
Palestine
Local time: 15:01
Member (2005)
Arabic
+ ...
Some translation web sites do ... Apr 1, 2006

but in another way. They offer a system in which the client is able to have a credit with the site of which the translator is paid after delivery of job.

Still, this would make the site a sort of a middle point between the translator and the client. ProZ I believe isn't playing a similar role in any way yet. ProZ is rather a resource for clients to find translators, and translators to find clients.

Why not asking your clients for that directly? We're already using bid system in quoting on jobs, so it shouldn't make a problem with a serious client on a large volume project I guess


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