Transferable Documentary Credit

Product highlights

A Documentary Credit with the option to allow an intermediary agent to transfer their rights and obligations to the supplier.

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Features and benefits

Enables your buying agent to source goods or services from suppliers without having to secure funds or credit facilities

Enables 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 it works

A Transferable Documentary Credit (DC) is a DC 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 DC is often used when:

  • The intermediary agent is unable to supply some or all of the goods stipulated in the DC 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 DC
  • The intermediary agent acts as the sourcing agent and is responsible for distributing portions of the DC (usually a large amount) to various suppliers
  • Related tool

    Reminder: "To borrow or not to borrow? Borrow only if you can repay!"

    Disclaimer:
    Global Trade and Receivables Finance transactions may be subject to credit approval. Other restrictions, including specific country regulations, may apply. Foreign currency exchange rates may apply to certain trade transactions.

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