Transferable Letter of Credit (TLC) allows the (first beneficiary) to make available in part or in whole the TLC to one or more second beneficiaries. First beneficiary does not need to issue a Letter of Credit to the second beneficiary and only need to transfer the TLC, varying certain terms and conditions. Goods are shipped directly from second beneficiary to the buyer.
• First beneficiary need not open another LC to purchase raw materials to manufacture the goods
• It opens an opportunity for middlemen or trading companies to participate in LC transaction without
trade facilities with the bank
• Allows you to control the trade transaction better and arrange similar terms in procuring the goods
from the second beneficiary to the buyer
• Can be transferred outside Singapore
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