Green clause letter of credit

Green clause letter of credit,

Definition of Green clause letter of credit:

  1. A condition in a guarantee document that allows a purchaser to receive advances ahead of shipment against collateral property represented by warehouse receipts. Use of a green clause letter of credit is often used in the agricultural business where a company can fund the harvest of a new crop by pledging available stock as collateral.

Meaning of Green clause letter of credit & Green clause letter of credit Definition