A Letter of Credit is an undertaking by a bank at the request of the buyer. It is used to make payment to the supplier within a specific time, against the presentation of trade documents. These trade documents will need to comply with the a Letter of Credit’s terms and conditions. You will need a credit facility with us to apply for a Letter of Credit.
A Transferable Letter of Credit allows the middleman to provide a Letter of Credit to the supplier. This is done by transferring the Letter of Credit that he receives from the buyer. You do not need a credit facility to apply for a Transferable Letter of Credit.
Transferable Letter of Credit
Secure the goods from your seller by transferring your buyer's Letter of Credit
Features and benefits
Expand procurement network
Facilitate the buying and selling process for a middleman.
Facilitate the buying and selling process for a middleman.
Assures end seller with payment assurance
As a first Beneficiary, you will be able to provide an LC to your actual supplier without using your own credit facility
As a first Beneficiary, you will be able to provide an LC to your actual supplier without using your own credit facility
Facilitate complex structure
Secure goods from your seller with a contract from your buyer.
Secure goods from your seller with a contract from your buyer.
How it works
Process for pre- and post-shipment
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Quicker processing without hard copy
Submit your supporting documents online for quicker processing.
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Fees and charges
Transferable Letter of Credit without substitution of documents
0.125% of the Transferable Letter of Credit amount. Minimum fee of S$300 applies.
Transferable Letter of Credit with substitution of documents
0.125% of the Transferable Letter of Credit amount. Minimum fee of S$500 applies.
Handling fees for Export Letter of Credit bill processing
0.125% of the bill amount. Minimum fee of S$75 applies.
Commission-in-lieu-of-exchange
0.125% of the bill amount. Minimum fee of S$75 applies.
How to apply
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FAQS
Common questions
What is the difference between a Letter of Credit and a Transferable Letter of Credit?
Who can apply for a Transferable Letter of Credit?
Any OCBC business customer who has an account with us can apply for a Transferable Letter of Credit.
You can apply even if you do not have a credit facility with us.
You can apply even if you do not have a credit facility with us.
How quickly will the Letter of Credit application be processed and approved?
It generally takes one working day (after the cut-off time) to process and transfer the Letter of Credit. Both the original Export Letter of Credit and completed Transferable Letter of Credit application form will have to be submitted.
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