Document background
The Transferable LC is a vital instrument in international trade finance, particularly useful when intermediaries are involved in the supply chain. This document type, while subject to Danish law, incorporates international banking practices through UCP 600 and is designed to facilitate complex trade transactions where the original beneficiary acts as a middleman. It provides security to all parties by ensuring that payment is made only against compliant documents, while allowing the first beneficiary to transfer their rights to ultimate suppliers. The document includes comprehensive details about the credit amount, validity, documentary requirements, and transfer conditions. It's particularly relevant in transactions where the first beneficiary is a trader or intermediary who needs to transfer the credit to actual manufacturers or suppliers.
