Question

A transferable credit is generally transferred on the basis of the terms of original lc but there're some permissible deviations in regard to transferring an LC. what are those deviation? ​

Answer 1

Answer:

A transferable letter of credit is a type of financial guarantee, known as a letter of credit, that additionally allows the first beneficiary to transfer some or all of the credit to another party, which creates a secondary beneficiary. The party that initially accepts the transferable letter of credit from the bank is referred to as the first, or primary beneficiary.

A transferable letter of credit is often used in business deals to ensure payment to the supplier or manufacturer. A transferable letter of credit is an alternative option to advance payments.