How to use transferable LC more effectively? PART - I By Isaac Tudu
How to use transferable LC more effectively? PART - I
A LC is issued in favour of the seller, who ships the goods and claims payment under LC. It is typically applicable when the Seller is the manufacturer of the goods.
But the buyer can do the business with an intermediary trader, who is not a manufacturer of the goods and operates on a narrow margin, with a limited WC.
Therefore, the trader seeks a means of finance for their purchase without engaging their own resources.
Transferable LC meets the above needs as LC issued in favour of the trader can be used as a means of paying the sources from which the trader obtains goods.
It is a very good product for exporters, engaged in the trading business, to increase their export/sales business.
Due to time constraints, I have divided the entire presentation into two videos i.e. PART- I and PART - II.
I have covered the following topics in this video (PART – I):
• Understanding transferable LC
• Need of transferable LC
• Advantage of transferable LC
• Risk and cost of transferable LC
• Transferable LC – How does it work?
I will be covering the below topics in my 2nd video (PART – II): will be released soon
• Important points of transferable LC
• Flow- Chart of transferable LCAbout
Speaker:- Isaac Tudu is an ex-banker with India’s largest Banks i.e. ICICI Bank and State Bank of India having more than 25 years of banking experience in Trade Finance and Credit with ICC certifications like CDCS, CSDG & CITF etc.
Isaac Tudu provides "CDCS Exam Preparation Online Course" for Bankers and Professionals working in Export-Import Business.
Isaac’s Vision: To create a financial world where SMEs are well conversant with Trade Finance without any ambiguity. Isaac’s Mission: To help 100,000 SMEs to achieve their Sales & Business Growth drastically by enabling them through the "Hassle-Free Trade Finance" Online Programme.
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