Transferable Letter of Credit

  • Transferable Letter of Credit

    Manage your cross-border trading and payment risks

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Overview

If you are a middleman/reseller in a transaction, you can request for UOB to transfer your Export Transferrable Letter of Credit (LC) to the final seller. This will eliminate the hassle of issuing an LC to purchase the goods before selling them against an Export LC, thereby helping you quickly secure the goods you have purchased.

UOB Export Trade Services Fee

UOB's rates, commissions and charges are in line with the market and are competitive. We strive to deliver professional, reliable and quality services. 

Trade Finance Services Fees > Export Services
Advising of Letters of Credit (LCs)
Pre-advice of LC (Brief Cable) / Advising Original LC / Advising LC Amendment
  • Account Holder
S$30 flat
  • Non-account Holder
S$50 flat
 
Confirmation of Letters of Credit
Confirmation of Letters of Credit (LC)
Subject to arrangement
 
Negotiation under Letters of Credit (LC)
Export Bill Negotiation 1/8%, min. S$75
Bank Acceptance Subject to arrangement
Countersign Letter Of Indemnity To Other Banks (subject to arrangement) 1/8% for two months, min. S$75
 
Transferable Letters of Credit
Transfer (subject to approval):
  • Full Transfer (without substitution)
Subject to arrangement
  • Partial Transfer
Subject to arrangement

Why Choose UOB

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Leverage UOB’s strong credit rating

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Extend your connections through UOB Group’s extensive network

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Manage trade transactions more efficiently

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Enhance the acceptability of your business proposition and secure your deal by applying for a UOB Banker's Guarantee or SBLC.

Gain direct access to trading parties worldwide through UOB Group's extensive network of regional office and worldwide correspondent relationships, as well as in-depth understanding of in-country regulations, operating environment, business practices and risks.

Take advantage of our electronic channels to help you manage your trade transactions more effectively

  • UOB Business Internet Banking Plus (BIBPlus) - Allows seamless electronic submission of applications and timely update of transaction records.
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  • UOB eAlerts - Receive trade alerts on the status of your import transactions.
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Other Trade Services

Import Services

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Export Services

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UOB Express Banker's Guarantee and Standby Letters of Credit

Call +65 6337 9126 when you are overseas.

  • Import Letter of Credit (LC)
    An Import Letter of Credit is an irrevocable undertaking given by the Issuing Bank, for the account of the buyer (Applicant), to pay the seller (Beneficiary) the value of the draft and/or documents, provided the terms and conditions set out in the Import Letter of Credit are complied with.
  • Trust Receipt
    Trust Receipt (TR) is a type of short-term import loan to provide the buyer with financing to pay for goods where title of goods is held by the Lending Bank but allows the buyer to take possession of the goods on trust for resale before paying the Bank on TR financing due date. TR financing is applicable to goods imported under Documentary Credit or Import Collections.
  • Invoice Financing
    Invoice Financing is a form of short-term borrowing used to finance a company's import invoices.
    Unlike financing under Import Collections and Import Letters of Credit, the trade documents does not go through the bank but are sent directly from the Exporter to the Importer. Importer has to submit invoices and other supporting documents as stipulated by the Lending Bank as proof of underlying trade when applying for Invoice Financing.
  • Import Documentary Collection
    Import Documentary Collection refers to the process whereby the buyer's Bank manages the incoming documents in accordance to the collection instruction from the seller (usually referred to as Drawer). The documents are released only upon acceptance of a bill of exchange or payment by the buyer.
  • Shipping Guarantee
    A Shipping Guarantee allows an Importer to take possession of goods from a shipping company when goods arrive at the port prior to receipt of original shipping documents. The Bank issues the Shipping Guarantee subject to indemnity from the Importer (the shipping guarantee Applicant).
  • Export Letter of Credit Advising
    When a Letter of Credit (LC) is received from an Issuing Bank, the Advising Bank will authenticate and release the LC to the Beneficiary. The LC may be re-advised by the first to a second Advising Bank (the Beneficiary's Bank) if the Issuing Bank has no direct test key with the Beneficiary's Bank, provided the first Advising Bank (Issuing Bank's correspondent) does.
  • Export Letter of Credit Discounting/Negotiation
    By negotiating an export Letter of Credit, the Beneficiary is able to obtain an advancement of funds from the nominated Negotiating Bank after acceptance of drafts and documents by the Issuing Bank.
  • Export Transferrable Letter of Credit
    When a Beneficiary receives a Transferable Export Letter of Credit (LC), he is entitled to request the nominated Bank to transfer the LC to a second Beneficiary, showing himself as an Applicant.
  • Export Letter of Credit (LC) Confirmation
    If the Beneficiary is unfamiliar with the LC opening Bank in its domicile country, the Beneficiary may obtain an additional payment undertaking from a Confirming Bank in his own country.
  • Export Bill Purchase
    This is an advance to the seller booked against his own facility.
  • Export Packing Credit
    A pre-shipment financing to facilitate the preparation of goods for shipment. Usually, the application must be accompanied by documents evidencing the intended shipment, but not the actual shipping documents.
  • Discounting of Trade Bill
    At the request of the Beneficiary, an export bill can be discounted upon acceptance by the Issuing Bank. In the discounting of drafts, interests and charges are deducted up front and loans are disbursed after such deduction.
  • Open Account Trade Finance
    Financing of the Exporter where trade documents are not sent through the banking system but directly to the Importer. Banks will provide Open Account Financing for the credit period offered by the Exporter to his Importer.
  • Export Documentary Collection
    Documentary Collection is the process in which the seller instructs his Bank to present documents in relation to a trade deal to the buyer’s Bank to present or release documents to the buyer against payment or acceptance of drafts payable at a determinable future date.

FAQ

The LC can be transferred only in accordance with the terms and conditions stipulated in the original LC, with the exception of the following which may be changed:

  • the LC amount
  • the unit price of goods (if stated in the original LC)
  • the time of shipment
  • the last date for presentation of negotiation documents
  • the expiry date of LC
  • Any or all of the above may be reduced in the transferred credit to the second Beneficiary.

The name of the Applicant can be substituted with the name of the first Beneficiary, unless the original LC stipulates that the name of the Applicant be used in any document other than the invoice. If all or part of the LC is transferred, the first Beneficiary retains the right to substitute their own drafts and invoices for those of the second Beneficiary, if they so require. Instructions must also be provided on whether the bank is allowed to make any amendments to the original LC to the second Beneficiary.

UOB can consider transferring the LC if it is stipulated and requested by the Issuing Bank. LC Transferring fees are normally charged to the account of the Beneficiary (Seller) unless otherwise agreed.
If you currently do not have any facilities with UOB, but wish to apply for the Transfer of a Letter of Credit by the Bank, please indicate interest via our callback form and one of our Sales staff will be in contact shortly.

Submit the completed Transfer LC Form together with the Original Export LC (LC must be advised through UOB) to any UOB Group Branch. The form is to bear signatures of the authorized Company Signatories and Company stamp. Upon successful application/approval, the application for Transfer LC will be processed.

Trade Counters

To collect trade documents or to submit the application forms, please visit us at any of the following Trade Counters:

Boon Lay

325 Boon Lay Place
#03-00 Singapore 649886

 

Raffles Place

80 Raffles Place
#07-00 UOB Plaza 2 Singapore 048624

 

Tampines

1 Tampines Central 1 #02-01 UOB Tampines Centre Singapore 529539

 

Jalan Sultan

100 Jalan Sultan
#01-29 Sultan Plaza Singapore 199001

 

Tai Seng

30 Tai Seng Street
#01-01 Breadtalk IHQ Singapore 534013

 

Thomson

251/253 Upper Thomson Road
#02-00 Singapore 574375

 

Apply Now

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Visit a UOB Branch

* If you have any existing credit facilities with us, please contact your Relationship Manager, or apply for BG online via BIBPlus.

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