Red Clause LC Vs LC Involving Advance Payment
Posted: Mon Sep 23, 2013 6:48 pm
WHAT IS THE DIFFERENCE BETWEEN RED CLAUSE LC AND STAGE WISE PAYMENT INVOLVING AD VANCE PAYMENT IN ONE STAGE
Gayathri,
Red clause LC is an advance payment ,Even Green clause LC for that matter.
But in Red clause advance is procured for purhcasing raw materials(Pre shipment finance),In case of normal advance payment this may be of any purpose.
Not sure whether I understood your question. What exactly are you referring to Stagewise Payment- Installment drawing ?? If it is ,then there advance payment will not be applicable here...