Type of business account UK

Discussion in 'International Business' started by Business account, Jan 18, 2021.

  1. Business account

    Business account UKBF Newcomer Free Member

    1 0

    My Friend in India wants me to source scrap materials and supply him to India from UK or around the world. When the goods arrive in India he will be paying me on LC Payment terms.
    The mark up for me doing all this will be a small commission and the shipments will be on regular basis.
    As this will be my first business opportunity, I am still un certain whether I should be doing this. If I go ahead what licenses do I need to get in UK. Also what business account should I start in UK?
    The invoice value of each shipment will be approx USD 20,000 and he has promised at least 1 shipment every month to start with.
    Posted: Jan 18, 2021 By: Business account Member since: Jan 18, 2021
  2. Scalloway

    Scalloway UKBF Legend Free Member

    17,014 3,639
    Posted: Jan 18, 2021 By: Scalloway Member since: Jun 6, 2010
  3. Mike Foulds

    Mike Foulds UKBF Regular Free Member

    121 42

    I would be VERY concerned if looking to arrange this.

    You are basically taking all the risk, both in paying for the scrap metal, organising and committing to pay the shipping line for haulage/freight, and then only getting paid at destination.

    Shipments of scrap are disliked both by shipping lines (They have had alot of cargo abandoned) and by hauliers who transport the containers for loading in the UK (Their trucks are more likely to incur punctures during transport), and therefore there are normally premiums, and the lines often ask for payment up front, even before loading, unless you have a credit account in place with them.

    Even if you trust your friend in India, that is alot to lay out, and a huge risk if he turns round and says "Actually, I don't need it now", or "I've found it from another source and you need to lower the cost for me to accept".

    If I was in your situation, I would ONLY look to do this if your friend was willing to pay you prior to loading/shipping the cargo, especially for the first few shipments, to ensure that the risk is not solely on your head.

    Hope that helps.
    Posted: Jan 19, 2021 By: Mike Foulds Member since: Mar 21, 2018