Transferable Letter of Credit | Transferable LC | DBS SME Banking Indonesia

Transferable Letter of Credit

Quick and simple way to purchase goods

Quick and simple way to purchase goods

At a Glance

Secure the purchase of goods by transferring your export Letter of Credit (LC) to your seller.

We transfer your received Export LC to your ultimate seller by issuing a Transferred LC

Enjoy this service without utilising a credit facility or placing a cash deposit

Monitor payment flows and ensure the outstanding balance is credited to you once paid

Features & Benefits

Access to experienced trade advisors if any technical issues arise

Ensure terms of the LC match your needs before it is issued with the help of our skilled documentary specialists

Potential Risks

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 all documents required, there is a risk of non-compliance. This can result in non-payment from the Export LC issuing bank

Eligibility

The Export LC should state that it is ‘transferable’ and that DBS is authorised to do this.

The terms and conditions of the Export LC and the Transferred LC should be identical, except for:

Credit amount
Any unit price state therein
Expiry date
Period for presentation
Latest shipment date or given period for shipment
Percentage for which insurance cover must be effected
Name of the first beneficiary may be substituted for that of the applicant/customer

FAQs

	Do I need a credit facility to apply ?
	No, you do not need a credit facility to apply for a Transferable LC.

	Can the transferred LC 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 LC?
	Yes, you may choose to fully or partially transfer the LC.

	What if I can’t substitute the draft and invoice in time?
	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 complete the application form?
	Please call our DBS Indonesia Customer Centre at 1500380 or +6221 80826902 (for overseas) for more information

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