Doing business with/in Venezuela?

Question

We have a prospective distribution client in Caracas, Venezuela. What we want is a Letter of Credit (LC) deal. Does Venezuela do LC deals with the U.S? Meaning can a Venezuelan bank do a LC deal with a U.S. bank so that we can get paid via our bank? If not, and the client has a bank in the U.S. already, how can she provide the money from Venezuela to her bank in the U.S.? I will meet with her next week but I want and need to know the answers to these questions before I meet with her for the deal. Can anyone help me with this?

Answer 1

All you need is an LC from a US Bank or from a Venezuelan Bank confirmed by a US Bank (in the US, not a US Bank in Venezuela) and you have no risk.

If she doesn't have the money or can't get it, it is the bank's problem to go after her, not yours.

She should be able to access dollars if she is importing.

Answer 2

A wise choice to only consider using a US bank.  If you went through a Venezuelan bank, the money would probably be nationalized and end up in the hands of that dictator Chavez.