Transferable letter of credit

How it is used

Transferability must be established under the credit's terms and applicable rules; it is not presumed.

Example sentences

1. The intermediary used a transferable letter of credit to involve its supplier.

   The mechanism brings another beneficiary into the same credit structure.

2. The bank checked the wording before agreeing to transfer the transferable letter of credit.

   The transfer depends on express terms rather than ordinary assignment alone.

Common collocations

• transferable letter of credit terms
• transfer a transferable letter of credit

Related terms

• letter of creditA bank's written promise to pay the seller in an international sale, provided that the seller presents the required documents, such as the bill of lading and invoice.
• beneficiaryThe person or company that receives money from a payment, a letter of credit, an insurance policy or a will.

More terms: Trade Finance

• trade finance
• letter of guarantee
• documentary collection
• bill of exchange
• forfaiting
• aval
• nominated bank
• reimbursement bank
• back-to-back letter of credit
• export credit agency
• payables finance