L/C Transfer

As a middleman, how can you settle an L/C without credit facilities?

A Transfer L/C is an ideal solution. You can wholly or partially transfer the L/C to your suppliers at your request, provided the L/C is “transferable”. Under such circumstances, the name of the buyer and that of the supplier must be disclosed.

There are two types of transfer L/Cs:

Fully Transferable
The L/C is fully transferred to the second beneficiary (supplier) from the first beneficiary (middleman) without any alteration of terms.

Partially Transferable
This L/C enables the first beneficiary (middleman) to substitute the draft and invoice submitted by the secondary beneficiary (supplier) and gain from a spread in the value exchanged. The transfer must be made under the same terms and conditions stated in the original L/C with exclusion of the following: amount, unit price, expiry date, presentation period and shipment date.