Transferable credit

A transferable credit is a type of credit that grants the beneficiary the power to direct the bank to make payment or acceptance on their behalf. This can also extend to other banks involved in the negotiation process. In simpler terms, it allows the beneficiary to transfer the credit to additional parties, known as second beneficiaries. This flexibility makes transferable credits a useful tool in international trade and finance.

Related terms

Bull Market

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Feedforward Computation

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Contingency insurance (or difference in conditions)

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Draft

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Glossary summary

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Reaction

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