If your customer is a middleman, trading house or sourcing office, you might receive a Transferred DC as the payment method. The ultimate buyer issues a Transferable DC to your customer who then transfers all or part of the DC to you to source the goods and effect payment. You are paid when the ultimate buyer pays your customer and, from the proceeds, your share of the payment is credited to you. You may also be a trading house of sourcing office and so can use our services to transfer DCs to your suppliers.
Because you do not have ultimate control over the presentation of compliant documents under the Transferable DC, your customer could mishandle the documents and put the payment at risk.
Your customer may not transfer subsequent amendments of the original DC to you. This could put you in a position whereby you cannot fulfil the requirements of the Transferable DC
The level of risk depends on the terms of the Transferable DC and the terms of the transfer. If you have any concerns, please contact us
