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Thetransferablecreditisdesignedtomeettherequirementsofinternationaltrade.Itenablesamiddlemanwhoisreceivingpaymentfromabuyerunderadocumentarycredittotransferhisclaimunderthatcredittohisownsupplier.Inthiswayhecancarryouttransactionswithonlyalimitedoutlayofhisownfunds.Atransferablecreditmayonlybetransferredonce.Thesecondbeneficiarymaynotfurthertransferitunlessthereisanexpressprovisiontothiseffectintheoriginalcredit.Thislimitontransferabilityisintendedtopreventabuse.
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