A: Transferable credit means that the issuing bank clearly indicates the words "transferable" in the credit，Authorizing its beneficiary may require the designated cashing bank of the certificate to act as a "transferring bank"，Or when the credit is free to negotiate，A specially authorized transferring bank may be requested in the certificate，A credit that transfers the credit in whole or in part to one or more new beneficiaries.
There are many reasons for the use of transferable letters of credit in trade: importers entrust middlemen to purchase goods，But the latter does not want to reveal its trading relationships and profits，They also want to reduce the burden of deposit and fees required for issuing new certificates;Or an importer placing a bulk order with a large foreign company，The latter shall be delivered separately by its semicolons or joint numbers scattered at each port.For importers，A letter of credit is riskier when it is transferable than when it is non-transferable，Because under a transferable letter of credit，Importers only deal with middlemen，Do not know the actual supplier situation，As long as the middleman can submit documents in accordance with the provisions of the credit，The issuing bank has to pay on time，Even a usance letter of credit，But when the goods arrived, they were found not in conformity with the regulations，The issuing bank cannot refuse payment，所以，Importers should be careful to open transferable letters of credit in their business。