Assignment of proceeds is a conditional undertaking from the advising or nominated bank to effect payment of proceeds received under a Letter of Credit to a third party beneficiary. It is helpful when the beneficiary is unable to issue a Transfer Letter of Credit or Back to Back Letter of Credit to the ultimate supplier. This is also a cheaper alternative compared to effecting a Transfer Letter of Credit or Back to Back Letter of Credit.
Benefits
Cheaper and simpler alternative to effecting a Transfer Letter of Credit or Back to Back Letter of Credit
