WE HAVE RECEIVED MANY ENQUIRIES FROM BUYERS BUT WHEN WE SEND PAYMENT TERMS 25% ADVANCE IN TT THEN THEY HESITATE T SEND MONEY.

COULD WE TRADE ON RED CLAUSE L/C FOR GETTING ADVANCE FROM BUYER?

COULD YOU ANYONE GIVE SUGGESTION THAT HOW BUYER SEND PAYMENT. I WANT TO KNOW PROCEDURE.

I ALSO WANT TO KNOW WHAT IS DIFF. B/T RED CLAUSE & GREEN CLAUSE L/C

Quoting from [Vijay Corporation]:


WE HAVE RECEIVED MANY ENQUIRIES FROM BUYERS BUT WHEN WE SEND PAYMENT TERMS 25% ADVANCE IN TT THEN THEY HESITATE T SEND MONEY.


COULD WE TRADE ON RED CLAUSE L/C FOR GETTING ADVANCE FROM BUYER?


COULD YOU ANYONE GIVE SUGGESTION THAT HOW BUYER SEND PAYMENT. I WANT TO KNOW PROCEDURE.


I ALSO WANT TO KNOW WHAT IS DIFF. B/T RED CLAUSE & GREEN CLAUSE L/C

Vijay Corporation - It is usually hard to convince a buyer to pay 25% in advance because the risk to the buyer is high. But a red clause letter of credit will give the buyer a sense of security and will most likely agree on that term.  In a red clause  letter of credit the negotiating bank is authorized to  make advances to the seller (beneficiary) so that the seller can purchase items needed for example to make the product and deliver them for shipment. I am not familiar with green clause.

Quoting from [Vijay Corporation]:


WE HAVE RECEIVED MANY ENQUIRIES FROM BUYERS BUT WHEN WE SEND PAYMENT TERMS 25% ADVANCE IN TT THEN THEY HESITATE T SEND MONEY.


COULD WE TRADE ON RED CLAUSE L/C FOR GETTING ADVANCE FROM BUYER?


COULD YOU ANYONE GIVE SUGGESTION THAT HOW BUYER SEND PAYMENT. I WANT TO KNOW PROCEDURE.


I ALSO WANT TO KNOW WHAT IS DIFF. B/T RED CLAUSE & GREEN CLAUSE L/C

Can anyone let me know.. If there is a non-shipment occur with the Red Clause L/C and the seller already got the advances... who will be responsible to recover back the advances ?? The Bank or myself ??

Quoting from [Vijay Corporation]:


WE HAVE RECEIVED MANY ENQUIRIES FROM BUYERS BUT WHEN WE SEND PAYMENT TERMS 25% ADVANCE IN TT THEN THEY HESITATE T SEND MONEY.


COULD WE TRADE ON RED CLAUSE L/C FOR GETTING ADVANCE FROM BUYER?


COULD YOU ANYONE GIVE SUGGESTION THAT HOW BUYER SEND PAYMENT. I WANT TO KNOW PROCEDURE.


I ALSO WANT TO KNOW WHAT IS DIFF. B/T RED CLAUSE & GREEN CLAUSE L/C

Of course the buyer has responsibility for recovery.

R S Nambi

CEO

Tejasve Exports

Quoting from [Vijay Corporation]:


WE HAVE RECEIVED MANY ENQUIRIES FROM BUYERS BUT WHEN WE SEND PAYMENT TERMS 25% ADVANCE IN TT THEN THEY HESITATE T SEND MONEY.


COULD WE TRADE ON RED CLAUSE L/C FOR GETTING ADVANCE FROM BUYER?


COULD YOU ANYONE GIVE SUGGESTION THAT HOW BUYER SEND PAYMENT. I WANT TO KNOW PROCEDURE.


I ALSO WANT TO KNOW WHAT IS DIFF. B/T RED CLAUSE & GREEN CLAUSE L/C

, So the payment by the red cross L/C will still cause risk, but it seems can protect the supplier more.

Dear...

 

Well this is a normal case in most of Indian and Chinese suppliers

since suppliers need an investment for basics of an order, and as you no buyer

will trust such a request.

During the past years I happen to opt a clause on PI requesting for a advance payment

payable through LC against a bank Gurantee by a seller and the balance payament payable

against documents on shipment as per terms and conditions, specifications stipulated

on PI or sales Contract.

 

This is a simple way out for such a situation.

 

Take care

Ashok

 

Quoting from [Vijay Corporation]:


WE HAVE RECEIVED MANY ENQUIRIES FROM BUYERS BUT WHEN WE SEND PAYMENT TERMS 25% ADVANCE IN TT THEN THEY HESITATE T SEND MONEY.


COULD WE TRADE ON RED CLAUSE L/C FOR GETTING ADVANCE FROM BUYER?


COULD YOU ANYONE GIVE SUGGESTION THAT HOW BUYER SEND PAYMENT. I WANT TO KNOW PROCEDURE.


I ALSO WANT TO KNOW WHAT IS DIFF. B/T RED CLAUSE & GREEN CLAUSE L/C

Quoting from [Vijay Corporation]:


WE HAVE RECEIVED MANY ENQUIRIES FROM BUYERS BUT WHEN WE SEND PAYMENT TERMS 25% ADVANCE IN TT THEN THEY HESITATE T SEND MONEY.


COULD WE TRADE ON RED CLAUSE L/C FOR GETTING ADVANCE FROM BUYER?


COULD YOU ANYONE GIVE SUGGESTION THAT HOW BUYER SEND PAYMENT. I WANT TO KNOW PROCEDURE.


I ALSO WANT TO KNOW WHAT IS DIFF. B/T RED CLAUSE & GREEN CLAUSE L/C