Transferable Letter of Credit

For the Importer

Transferable Letter of Credit (TLC) allows your supplier (first beneficiary) to make available in part or in whole the TLC to one or more second beneficiaries. This enables your supplier to transfer part or all of his rights and obligations to the second beneficiary (actual supplier). The first beneficiary does not need to issue a Letter of Credit to the second beneficiary and only need to transfer the TLC, varying certain terms and conditions. Goods are shipped directly from the second beneficiary to the buyer in this instance.

Benefits

• Allows the first beneficiary to arrange similar terms with the buyer and second beneficiary
• Minimizes the risks of non-delivery or late shipment as the TLC assures the first beneficiary of payment
• Ensures your goods are delivered within the agreed terms and conditions
• Improves your credibility as a purchaser
• Allows access to financing options through our comprehensive range of import financing products
• Governed by International Chamber of Commerce rules
• Can be issued to suppliers worldwide in major currencies in the form of SWIFT, telex, courier and registered mail.

For the Exporter and Middleman

TLC allows you to make available in part or in whole the TLC to one or more second beneficiaries. Thus you will be able to free up your funds and credit facilities in fulfilling your duties as a middleman. This gives you added financial maneuverability. You will also be able to control the trade transaction better as amount, latest shipment date, expiry date and several other terms are changed. The second beneficiary also receives added comfort in receiving a TLC issued by a bank.

Benefits

• Allows you to secure goods from the ultimate supplier without utilizing your own funds or credit facilities, enabling you to expand your trade as your funds and credit facilities are freed up
• Allows you to control the trade transaction better and arrange similar terms in procuring the goods from the second beneficiary to the buyer
• Reduces the risk of non-payment by the buyer as payment is guaranteed by a bank
• Reduces the risk of non-payment by the buyer's bank when your documents are checked by a bank
• Governed by International Chamber of Commerce rules
• Can be received from buyers worldwide in major currencies in the form of SWIFT, telex, courier and registered mai