The world's local bank
You are here:
- Home
- Corporate Banking
- Trade and Supply Chain
- Exporting
- Transferred DC
Transferred Documentary Credit
Why is this export service right for you?
- Reduces the risk of non-payment by having a bank payment obligation transferred to you
- Gives you assurance of a confirmed order and peace of mind if you are uncertain of the financial standing of your customer
- Enables the recipient to secure financing in some countries where a Documentary Credit (DC) is required
How a Transferred DC works
If your customer is a middleman, trading house or sourcing office, you might receive a Transferred DC as the payment method. The ultimate buyer issues a Transferable DC to your customer who then transfers all or part of the DC to you to source the goods and effect payment. You are paid when the ultimate buyer pays your customer and, from the proceeds, your share of the payment is credited to you.
Potential risks
- Because you do not have ultimate control over the presentation of compliant documents under the Transferable DC, your customer could mishandle the documents and put the payment at risk
- Your customer may not transfer subsequent amendments of the original DC to you. This could put you in a position whereby you cannot fulfil the requirements of the Transferable DC
The level of risk depends on the terms of the Transferable DC and the terms of the transfer. If you have any concerns, please contact us.
Online Services
HSBCnet
or
Internet banking
or
