As trading companies, Customers can transfer DCs to multiple suppliers without the need for credit facilities to ensure that the underlying goods are supplied in accordance with the terms and conditions of the original DC. Transferred DC’s reduce the risk of non-payment by having a bank payment obligation transferred to you. Transferred DC’s enable the recipient to secure financing in some countries where a Documentary Credit (DC) is required.
If your customer is a middleman, trading house or sourcing office, you might receive a Transferred DC as the payment method. The 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 buyer pays your customer. If you are a trading house or sourcing office you can use our services to transfer DCs to your suppliers.
* Please note that your customer may not transfer subsequent amendments pertaining to the original DC to you.
*All Documentary Credits are subject to Uniform Customs and Practice, International Chamber of Commerce no 600 (UCP 600) publication dated 01 July 2007.