This letter is written by a third party who authorizes to have a right to the amount of letter of credit as per the request by the client. This letter is a means of contacting the third party client and requesting them to finish the transaction as approved in the contract that both parties have done at times.
Letters of credit can be considered an important payment method in international trade for various reasons but their two features make them invaluable. First of all, they not only reduce the risks of the parties to acceptable limits, but also they have a flexible structure that makes them suitable for applying to different scenarios successfully. The transferable letter of credit is a type of credit that is used in cases where the middlemen are playing a particular role. The middlemen who lack funds to purchase the goods from the sources and then re-sell it to the customers. The last buyer can offer the transferable letter of credit to the middlemen if they find working with them valuable and beneficial.
Transferable Letter Of Credit Writing Tips
- Write everything, in brief, the amount, the mode of payment, etc. Do not write a lengthy letter.A short and sweet letter makes a difference.
- Use a professional language as the letter is an official one. Use all the technical terms those are required to be used. Do not make use of a very simple language.
- Also, mention all the terms and conditions in details. Also, write about how the money has to be repaid. Write the address at which the demand draft has to be sent. This will make the things easy.
- Write about the rights that you are going to give to the person.
Transferable Letter Of Credit Template
Use our free Transferable Letter of Credit to help you get started.
From,
_____________
_______________
Date:____________(Date on Which Letter is Written)
To,
____________
_________
Subject :_____(mention the purpose)
Dear ___(Sir/Madam)
We are writing this letter to you according to the request made by one of our main customer, ______(name of the company). A letter of credit for Rs ____(amount)- has been issued by The Board of Directors of ____ bank(name of the bank). Moreover, we authorize the letter of credit as it can be transferred to the third party client and we also issue them rights to reach a share of the amount with the aim of satisfying the requirements of our clients to obtain the contract that has done after the respective parties of the agreement. We also allow you to access to the amount as long as you
Make sure to send us a demand draft of the amount as agreed. This demand draft should be sent to our office address.
Thanking you,
Yours Sincerely,
__________
(Name and signature)
Sample Letter
From,
Maharashtra bank,
Mumbai
DD/MM/YYYY
To,
Mr. Joshi,
Block 7, La Salette,
MG Road,
Mumbai
Subject: transferable letter of credit
Dear Mr. Joshi,
This is as per requested by our important customer, XYZ Ltd. Navi Mumbai, The Board of Directors of Maharashtra Co-operative bank issue a letter of credit of Rs. 50000/-. We further give authorisation to the said credit letter as it is transferable to the third party client giving them right to access a portion of the amount to fulfill the requirements of our client to acquire the contract that the parties have mutually agreed. We permit you to access to the amount on condition that you ensure to send us the amount by issuing a demand draft according to the agreement.
Yours sincerely,
Mr. Joshi
Email Format
Given below is an email format of Transferable letter of credit.
To: name@email.com
From: name@email.com
Subject-Transferable Credit
Dear ___(Sir/Madam)
We are writing this letter to you according to the request made by one of our main customer, ______(name of the company). A letter of credit for Rs ____(amount)- has been issued by The Board of Directors of ____ bank(name of the bank). Moreover, we authorize the letter of credit as it can be transferred to the third party client and we also issue them rights to reach a share of the amount with the aim of satisfying the requirements of our clients to obtain the contract that has done after the mutual parties of the agreement. We also allow you to access to the amount as long as you
make sure to send us a demand draft of the amount as agreed. This demand draft should be sent to our office address.
Thanking you,
Yours Sincerely,
__________
(Name and signature)
Leave a Reply
You must be logged in to post a comment.