Transferable Letter of Credit (LC)

At a Glance

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

Simple process

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

Convenient

Enjoy DBS Bank’s Transferable LC service without utilising a credit facility or placing a cash deposit

Stay in the know

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

Features & Benefits

Advice and expertise

Access to experienced trade advisors if any technical issues arise when using our Transferable LC service

Secured and certified

Ensure terms of the Transferable LC match your export 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

Fees

To learn more about the fees associated with DBS’ Transferable Letters of Credit (LC), please refer to Trade Finance Service Fee Schedule.

How to Apply

Simply submit your application form at one of our Trade Collection Branches or SME Banking Centres. Alternatively, you can apply via DBS IDEAL

Download PDF

Application for Full Transfer of Documentary Credit

Application for Partial Transfer of Documentary Credit

Application for Amendment to Transferred Credit

Trade Finance Service Fee Schedule

FAQs

What is an Export Letter of Credit (LC)?

Export Letter of Credit (LC) is a commonly used international trade finance instrument issued by banks that represents the commitment of an importer to guarantee payment will be made to the beneficiary (exporter) when the terms and conditions specified in the export LC have been met. If the export LC states that it is ‘transferable’, you can then fully or partially transfer the LC to the ultimate seller.

	What is a Transferable Letter of Credit (LC)?
	A Transferable LC is a credit facility that allows the first beneficiary to pass available credit to another party. This is made possible when the LC is marked as transferable by the issuing bank, based on the instructions received from the buyer of the goods.

	Do I need a credit facility to apply for a Transferable Letter of Credit (LC)?
	No, you can apply for a Transferable LC without one.

	Can Transferable LC be further transferred again?
	No, it can be transferred to one or more second beneficiaries, but cannot be further transferred.

	Can I partially transfer the Letter of Credit (LC)?
	Yes, you may choose to fully or partially transfer the LC.

	What if I cannot substitute the draft and invoice in time?
	The full set of documents received from the second beneficiary will be sent to the issuing bank for payment.

	How do I complete the application form?
	You may call DBS BusinessCare at 2290 8068 for assistance.

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