9 Differences between Transferable LC and Back-to-Back LC by Isaac Tudu
9 Differences between Transferable LC and Back-to-Back LC by Isaac Tudu
Transferable LC means an LC that specifically states it is "transferable". A transferable LC may be made available in whole or in part to another beneficiary ("second beneficiary") (Supplier of goods) at the request of the beneficiary ("first beneficiary") (Intermediary trader).
When the second LC (LC B) is issued by the same bank that advised the first LC (LC A), LC B is referred to as a ‘back-to-back LC. This is because the advising bank of LC A opens LC B on ‘the back of’ LC A.
I have covered the following topics in this video:
• Similarity between Transferable LC and Back-to-Back LC
• Difference between Transferable LC and Back-to-Back LC
• What will you choose Transferable LC or Back-to-Back LC?
About 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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