Subject:
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Re: Notice of Price Changes in Factoring Service
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Newsgroups:
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lugnet.market.services
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Date:
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Tue, 21 Mar 2000 17:46:19 GMT
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Viewed:
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1246 times
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Larry Pieniazek <lar@voyager.net> wrote:
> In lugnet.market.services, Frank Filz writes:
>
> > Has the currency exchange fluctuation been a problem with when
> > factoree's get sent money? I.e., you collect payments over a period of
> > several months at varying exchange rates, but by the time you send
> > actual cash, the rate has changed, or is the problem that buyer and
> > seller agree on an exchange rate, which is less favorable to the
> > factoree than the exchange rate you (or the factoree) use?
>
> Both, mostly the former.
I agree. From what I see from my Italian side of the factoring service, the
exchange rate risk is *possibly* a BIG problem when the amounts involved are
not so small. Imagine you have to send a 300$ check to an Italian seller,
exchanged at an agreed rate usually very close to the current rate. You have
to write the check, put it in an envelope, write the address and post it.
All this for 1 dollar less your postage expenses. Not even to mention the
work you have to perform to keep your records. When you finally happen to
receive some 1000$ or so from Larry the rate might be very different from
what you paid, giving you either profit or loss.
But I used the word *possibly* to highlight the fact that this didn't
actually happen. I strongly believe that Larry's factoring service was a
great idea and an invaluable help for many people. Some point to reflect
upon:
- This service's not being run for profit. Nobody can get rich earning some
fraction of a dollar for transaction. And it's very time consuming too.
- On the contrary the service is a great way to help people no very used to
int'l transactions, and people who don't even speak the same language of
their counterpart.
- All the Italian sellers and buyers that used the service fully understood
these points and are very happy with the service.
- As for the exchange rate risk, I do myself understand that most of the
transactions are very small and I can accept the risk. I run my side of the
service to use the service myself and to help the Italian friends. And even
if I like to see my time and effort rewarded, I don't care if I lose a
dollar or two on the exchange rate of a single transaction, I think I'll get
it back sooner or later.
The situation is different with the big sellers, like Cesare Lanza. Cesare
is very happy with the service, I'd say really enthusiast. But I clearly
explained him the situation and my concerns about the risk of losses with
the rates. I asked him to take (or share) any possible loss and profit, and
Cesare's been very open on this topic. He declared he doesn't want I loose
even a single penny servicing him. Even less problems if possible with the
other Italians that abitually use the service and with the new entries.
- Cesare, Giulio, Marco, Wilmer, Ezio and all the other guys accepted to
move the real money only from time to time, when we actually meet or when
their account reach a number of transaction or a specific threeshold. This
thing simplifies a lot my job, and is obviously possible because we fully
trust each other.
All that said, you can see that with some cooperation and understanding of
the essence of this service, everything run really smoothly. I'll be glad to
have a role in the Larry's factoring service until we have a simpler and
better way to move money anywhere in the world (see below).
> > I hope x.com internationalizes soon, that will solve most of the
> > problems (with x.com, I suspect most of the regular international
> > sellers on eBay to get x.com accounts).
>
> Me too. It would put me right out of business and I'd be SO THRILLED.
:-) Me too!
Mario
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