Collyer Consulting

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Collyer Consulting 'virtual' Letter of Credit MasterClass 2020 24/07/2020

For many people that are based in the Middle East region, I have been conducting an annual Letter of Credit MasterClass for the last 10 years...more

ICC releases the 2020 Global Survey on Trade Finance incorporating an assessment of the impact of COVID-19 21/07/2020

The International Chamber of Commerce’s (ICC) 11th annual Global Survey on Trade Finance reveals that banks are optimistic about the evolving nature of trade finance, though unsurprisingly expect various industry-wide challenges and disruption as a result of the COVID-19 pandemic...more

Latest Question

In the textbook, a red clause credit is often described as a credit which stipulates that an advance payment is to be made by the nominated bank but under the protection of the issuing bank. The beneficiary must repay the value of the advance payment received plus the financing fee from proceeds of the drawing made under the credit. If no complying presentation is made, the issuing bank would pay the nominated bank the total amount due (the advance payment amount plus the financing fees). But, nowadays, we often see this kind of credit, e.g., Part A covering 30pct of goods value is payable as an advance payment against a simple receipt only. Part B covering 70pct of goods value is payable against shipping documents. Question: Can this kind of credit be called a ‘red clause credit’ or ‘anticipatory credit’?

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March 2013

Recent News

Collyer Consulting 'virtual' Letter of Credit MasterClass 2020 24/07/2020

ICC releases the 2020 Global Survey on Trade Finance incorporating an assessment of the impact of COVID-19 21/07/2020

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