Transferable Letter of Credit
In businesses that involve middlemen, a transferable letter of credit is considered useful. The financial institution issues a Transferable Letter of Credit in this case so that the final buyer also has access to some or full part of the credit amount.
In the first paragraph, mention the name of the customer who had requested for the Letter of Credit or the middleman. Also, mention the amount of the credit issued. In the second paragraph, inform the third party regarding the issuance of a transferable letter and state to him the details of the document.
In the concluding text, ask the recipient or the third party to make the required payment so that the transaction can go through.
Instructions
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Sample Transferable Letter of Credit
Chris Hewitt
Proprietor,
Vice Steel Mills
February 12, 2012
Subject: Transferable Letter of Credit
To Whom It May Concern
I am writing in reference to the request for credit made to us by our customer Nathan Blight of Value Exports Limited. The management of Gilmore Bank has decided to issue a Letter of Credit for $7,000 for the reported transaction.
The bank has authorized the issued letter as transferable to the third party and allows the respective client to access some part of the issued credit. The third party is allowed to access a part of the issued amount which has already been decided between the two parties involved.
Gilmore Bank authorizes you as the third party as requested by our customer and grants access to the credited amount. For the transaction to go ahead, you will have to pay the required amount to us through a Demand Draft to the branch’s address mentioned below.
We are looking forward to maintain healthy business relations with all the parties involved.
Yours sincerely,
Tom Fox
Branch manager
Circle Road Branch, TX 3455
Gilmore Bank -
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Template of Transferable Letter of Credit
[Recipient’s Name]
[Recipient’s Company]
[Date]
Subject: Transferable Letter of Credit
To Whom It May Concern
This is in reference to the request for credit made to us by our valuable customer .................... on .................... Our board members have come to a decision to issue a Letter of Credit of the amount of .....................
The issued letter will be transferable to a third party as requested by our client. The third party client will be allowed to access some part of the credit issued. The amount will be determined by the agreement made by the two parties involved.
We hereby request you to deliver the amount to the below mentioned address by the help of a Demand Draft.
Yours sincerely,
[Sender’s Name]
[Sender’s Title]
[Sender’s Company]
[Sender’s Address]
