Transferable Letters of Credit for Export Financing

Companies that export products internationally can use Transferable Documentary Letters of Credit to finance the purchase of goods for shipment. The exporting company (1st beneficiary) of a letter of credit can transfer all or a portion of the credit to a second party or supplier (2nd beneficiary) for the purchase of goods and services. When the supplier ships the goods, the negotiating bank can replace the 2st beneficiarys invoice with the 1st beneficiarys invoice for the full value of the letter of credit.

This webcast will help exporters understand Transferable Letters of Credit and how to use them for financing the purchase goods from a supplier for shipment.

You will learn how to use Transferable Letters of Credit to finance exports and what terms and conditions they must comply with for successful transactions.

This 60 mins course will cover:

• What is a Transferable Letter of Credit, UCP Article 38?
• How it is used for export financing?
• What are the terms and conditions of a transferable LC?
• How do I substitute my invoice for the higher amount?
• How do I transfer a LC to a second party supplier?
• What are the benefits of a transferable LC?
• What are the risks of a transferable LC?
• How confidential is the transferable LC?

This webinar will provide valuable assistance to all companies that export or import goods and need trade financing for the purchase of all or part of their goods from a second party.

• Export trading companies that need financing
• Import companies that are asked to provide a Transferable Letter of Credit
• Freight Forwarding companies that must prepare negotiable documents for clients
• Bank staff involved with commercial bank trade finance services