: Once documents are verified, the Issuing Bank pays the Transferring Bank, which then distributes funds to the supplier and the middleman. Essential Conditions (UCP 600)
: The Transferring Bank advises the middleman of the credit. The middleman then requests the bank to transfer the credit (or a portion of it) to the supplier.
: The Transferring Bank notifies the supplier’s bank ( Advising Bank ) of the transferred credit in favor of the second beneficiary.
: The supplier ships the goods and presents the required documents to their bank. These are then forwarded to the Transferring Bank.
: The buyer applies to their bank ( Issuing Bank ) to open an irrevocable letter of credit designated as "transferable" in favor of the middleman.
