Question

The type of letter of credit that can be split up between many suppliers, each able to present their own documents for payment and allowing the trader to take his profits from the balance of the credit, is called:__________.

Answer 1

The answer is Transferable letter of credit.

Explanation:

A Credit can be transferred from one part to more than one second beneficiary partial drawings or shipments are allowed. Whereas a transferred credit at the request of a second beneficiary.

A transferable letter of credit is allowed to transfer the credit they are due to another party. The parties are the buyer, middle man and the seller.

They are found in business that deals to ensure the payment is made to a supplier.

Thus the type of letter of credit that can be split up between many suppliers, each able to present their own documents for payment and allowing the trader to making his profits from the balance of the credit is called Transferable letter of credit.

Answer 2

Letter of credit that can be split up between many suppliers, each able to present their own documents for payment and allowing the trader to take his profits from the balance of the credit, is called Transferable Letter of Credit .

Explanation:

Transferable Letter of Credit is a credit document in which the party can transfer the credit in full or partial to another beneficiary.

A transferable credit letter that enables a receiver to further pass all or part of the payment to another supplier in the chain or to some other receiver. This usually occurs when the recipient is merely a conduit to the actual supplier. Such LC allows the beneficiary to have their records, but to further pass the credit.