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

Certificate of Deposit

Understand the meaning and definition of Certificate of Deposit in the context of stock market, trading, and investments.

Contingency insurance (or difference in conditions)

Understand the meaning and definition of Contingency insurance (or difference in conditions) in the context of stock market, trading, and investments.

Adaptive Filter

Understand the meaning and definition of Adaptive Filter in the context of stock market, trading, and investments.

Mandelbrot Set

Understand the meaning and definition of Mandelbrot Set in the context of stock market, trading, and investments.

ASBA

Understand the meaning and definition of ASBA in the context of stock market, trading, and investments.

Normalized

Understand the meaning and definition of Normalized in the context of stock market, trading, and investments.

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