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Transferable Documentary Credit
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Why is this payment method right for you?
Enables your buying agent to source goods or services from suppliers without having to secure funds or credit facilities
Allows your buying agent to source goods or services from multiple suppliers using one credit
You retain control over the entire transaction as all parties follow the same terms and conditions with only a few changes allowed
How does a Transferable Documentary Credit work?
A Transferable Documentary Credit is a Documentary Credit with the option to allow an intermediary agent to transfer their rights and obligations to the supplier. As a result the supplier is also required to meet your terms and conditions.
A Transferable Documentary Credit is often used when:
The intermediary agent is unable to supply some or all of the goods stipulated in the Documentary Credit and therefore wishes to transfer part, or all, of the credit
The intermediary agent is unable to secure back-to-back credit facilities from their bank and the supplier demands settlement by Documentary Credit
The intermediary agent acts as the sourcing agent and is responsible for distributing portions of the Documentary Credit (usually a large amount) to various suppliers
