Transfer Letter of Credit (Transferable LC) | OCBC Business Banking SG
Transferable Letter of Credit

Transferable Letter of Credit

Secure the goods from your seller by transferring your buyer's Letter of Credit

Why you will love this

Secure the goods from your seller by using the security of a Letter of Credit

Credit facility and cash deposit are not required

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

Pre-shipment

Step 1

Your buyer issues a Transferable Letter of Credit via his bank (Issuing Bank)

Pre-shipment

Step 2

You submit an application to OCBC to transfer the Letter of Credit to your seller

Pre-shipment

Step 3

OCBC transfers the Letter of Credit to your seller

Pre-shipment

Step 4

Seller ships out goods and submits trade documents to his bank

Post-shipment

Step 5

OCBC notifies you when trade documents have been received and checked

Post-shipment

Step 6

You can substitute the invoice and bill of exchange from your seller with your own set of trade documents

Post-shipment

Step 7

OCBC will send the new set of documents to the Issuing Bank for payment / acceptance

Post-shipment

Step 8

OCBC will pay you and your seller when the funds are received by the Issuing Bank
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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

Take your business to the next level with us

Our trade finance specialists are here to understand your business requirements.
Speak to us today and apply.

FAQS
Common questions
What is the difference between a Letter of Credit and a Transferable Letter of Credit?
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.
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.
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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