Back to Back Letter of Credit


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For the Importer

Back to Back Letter of Credit (BBLC) allows your supplier to secure the delivery of goods from the actual supplier. The BBLC (sometimes referred to as the Baby or Slave LC) is issued on the strength of the Master Letter of Credit (Master LC) issued by you and its terms differ in varying degrees from the Master LC. This allows greater flexibility and variation in terms and conditions compared to the Transferable Letter of Credit.

Benefits

  • Allows your supplier to vary the terms with the ultimate supplier giving added flexibility to the trade transaction
  • Minimizes the risks of non-delivery or late shipment as the Master LC assures the supplier of payment
  • Ensures your goods are delivered within the agreed terms and conditions
  • Improves your credibility as a purchaser
  • Allows access to financing options through our comprehensive range of import financing products
  • Governed by International Chamber of Commerce rules
  • Can be issued to suppliers worldwide in major currencies in the form of SWIFT, telex, courier and registered mail.

For the Exporter and Middleman

BBLC allows you to purchase goods required in the Master LC from your ultimate supplier. The Slave LC will contain the salient points of the trade such as goods description and shipment details. However, the identity of the ultimate buyer and the actual purchase price will not be made known to the ultimate supplier.

Benefits

  • Allows flexibility in varying the terms and conditions from the Master LC to suit the second beneficiary
  • The identity of the buyer and actual purchase price will not be known to the ultimate supplier and vice versa
  • Minimizes the risks of non-delivery or late shipment by the ultimate supplier as the Slave LC guarantees payment upon presentation of compliant documents
  • Governed by International Chamber of Commerce rules
  • Can be issued to ultimate suppliers worldwide in major currencies in the form of SWIFT, telex, courier and registered mail
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