Role of CB Bank: At the request of beneficiary / transferor, CB Bank transfers the issuing bank’s irrevocable LC undertaking

Tenor: The large majority of transactions will be sight, with up to 180 days. Tenor greater than 180 days requires further risk assessment and approval.

Benefits to Exporter (Seller)

• You can do business on a larger scale, since the security provided by the Import Documentary Credit may be transferred to the actual supplier(s) or other parties to the transaction that will receive payment.
• Source goods or services from multiple suppliers using one credit line
• Retain control over the entire transaction as all parties follow the same terms and conditions with only a few changes allowed

Process

1. Your buyer issues a transferable LC via his bank (LC issuing Bank)
2. You submit an application to CB Bank to transfer the LC (complete or partial) to your seller
3. CB Bank transfers the LC to your seller
4. Seller ships out goods and submits trade documents to his bank
5. Seller’s bank notifies you when trade documents have been received and checked
6. You may substitute some documents (e.g. amount of credit, unit price, expiry date, period of presentation, latest shipment date)
7. CB Bank will send the new set of documents to LC issuing bank for payment / acceptance
8. CB Bank will pay you and your seller when the funds are received by the LC issuing bank