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- Corporate Banking
- Trade Finance
- Export
- SCB Letter of Credit Transfer
- Corporate Banking
- ...
- SCB Letter of Credit Transfer
EXPORT
SCB Letter of Credit Transfer
Increase the liquidity of your export business by taking advantage of L/C.
ShareA letter of credit transfer is the right stated in the L/C that allows the trader (first beneficiary) to transfer the L/C to the next beneficiary (second beneficiary), who is the manufacturer or supplier. Typically occurs in a deal where the trader is not the manufacturing company or there may not be enough items. The importer bank will issue a letter of credit to the trader with terms permitting to transfer the right under the L/C to the next beneficiary.
Normally, an L/C transfer is a one-time transfer for the whole amount, however, if the L/C allows for partial shipment, it can be partially transferred to more than one-second beneficiary; but the total amount must not exceed the amount in the L/C and can only be transferred once. The next beneficiary who receives the L/C transferred will not be able to transfer the L/C to another person.
The transferred letter of credit might be charged in two ways:
A letter of credit transfer is the right stated in the L/C that allows the trader (first beneficiary) to transfer the L/C to the next beneficiary (second beneficiary), who is the manufacturer or supplier. Typically occurs in a deal where the trader is not the manufacturing company or there may not be enough items. The importer bank will issue a letter of credit to the trader with terms permitting to transfer the right under the L/C to the next beneficiary.
Normally, an L/C transfer is a one-time transfer for the whole amount, however, if the L/C allows for partial shipment, it can be partially transferred to more than one-second beneficiary; but the total amount must not exceed the amount in the L/C and can only be transferred once. The next beneficiary who receives the L/C transferred will not be able to transfer the L/C to another person.
The transferred letter of credit might be charged in two ways:
Service Features
In order to advise L/C to SCB, the importer should be informed of SCB's address as follows:
- The overall cost of L/C can be decreased.
- The unit price can be lowered.
- The time required to submit export documents (the presentation period) can be decreased.
- The age of the L/C (expiry date) can be shortened.
- The delivery date can be scheduled to be sooner.
- The percentage of insurance coverage can be raised.
Highlights
Illustration
Benefits
Service Channels
Documents
- Original or amendment L/C (if any)
