Export Services

Transferable Letter of Credit

Purchase goods quickly and easily by transfering your export Letter of Credit

Secure the purchase of goods if you are acting as the middleman in a trade transaction. Instead of issuing a Letter of Credit to purchase goods that can then be sold against an Export Letter of Credit, DBS can help make the process simpler and quicker. We transfer your received Export Letter of Credit to your ultimate seller by issuing a Transferred Letter of Credit. You can easily enjoy this service without utilising a credit facility or cash deposit.

 

Why choose DBS Transferable Letter of Credit?

  • Grow your business with the Best Trade Finance Bank in India and the bank that was named the Rising Star for the Transaction Bank category, both awarded by The Asset in 2013
  • Monitor the flow of payment and ensure that the outstanding balance of the Transferred Letter of Credit is credited directly to you once it has been paid
  • Access advice and expertise on technical issues arising from your Transferred Letter of Credit with our experienced trade advisors
  • Ensure the terms of the Letter of Credit match your needs before it is issued with the help of our skilled, certified documentary checker

Product Details


The Export Letter of Credit should specifically state that the Letter of Credit is "transferrable" and that DBS is authorised to do this. The terms and conditions of the Export Letter of Credit and the transferred Letter of Credit should be identical, except for the following:

  • The credit amount
  • Any unit price stated therein
  • The expiry date
  • The period for presentation
  • The latest shipment date or given period for shipment
  • The percentage for which insurance cover must be effected
  • The name of the first beneficiary may be substituted for that of the applicant/customer

  • The identity of the ultimate buyer and seller would probably be disclosed from the documentation submitted by the ultimate seller
  • If the ultimate seller is unable to submit the full set of documentation required by the transferred Letter of Credit, there is a risk of non-compliance with the terms and conditions of the Export Letter of Credit. This can result in non-payment from the Export Letter of Credit issuing bank

FAQs

Do I need a credit facility to apply for a Transferable Letter of Credit?

No, you do not need a credit facility to apply for a Transferable Letter of Credit.

Can the transferred Letter of Credit be further transferred again?

No, it can only be transferred to one or more second beneficiary, but cannot be further transferred.

Can I partially transfer the Letter of Credit?

Yes, you may choose to fully or partially transfer the Letter of Credit.

If I am unable to substitute the draft and invoice in time, how do you proceed?

In the event you are unable to substitute the invoice and draft of the second beneficiary, DBS will send the full set of documents received from the second beneficiary to the issuing bank for payment.

 

How do I apply?

Simply visit us at any of our Branches and our Relationship Manager will be glad to assist you.