Back-To-Back Letters Of Credit

Drastic times call for drastic measures. You saw an ad selling two DeLoreans on Craigslist that you know your friend's high-end car rental company, Viva los DeLoreans, located in Chile, would buy in an instant. What should you do?

Be the middleman. Broker the deal.

You arrange a loan here in the U.S. to buy these two DeLoreans with the seller getting the dough. Your friend in Chile goes to his bank and gets a loan to buy the two cars from you. That process is obtaining back-to-back letters of credit with the intent of easing the level of risk for any one party. And if done right, you, the middleman, get a bit of dinero in the deal to make it worthwhile.