Green Clause Letter of Credit (LC) – Empowering Trade with Advance Support | NNRV Trade Partners
Ensure Secure & Flexible Global Trade Financing | 100+ Pre-Shipment LC Structures | SWIFT Network Connected
⚠️ Facing Shipment Delays Due to Lack of Advance Funding?
A Kenyan agro-exporter risked losing a €1M EU contract because they couldn’t afford warehousing and insurance pre-shipment. In 48h, NNRV structured a Green Clause LC and released $150K in advance. Delivery went smoothly—deal secured.
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🧠 « Without NNRV’s Green Clause LC, I couldn’t afford storage or cover insurance. Their solution saved my season. »
💼 What is a Green Clause Letter of Credit?
A Green Clause LC is a special type of documentary credit that allows the beneficiary to receive advance funds before shipment, not only for purchasing goods but also for storing and insuring them. The term “green” comes from the original practice of writing the additional clause in green ink.
At NNRV TRADE PARTNERS, we offer Green Clause Letters of Credit (LCs) to support businesses requiring pre-shipment financing. Unlike Red Clause LCs that only allow advances for procurement, Green Clause LCs cover storage, insurance, and additional handling expenses, offering suppliers more flexibility and working capital before shipment.
This type of LC is essential for exporters who need early funds to prepare goods for international delivery while ensuring the buyer is fully protected.
✅ Advance for Storage & Insurance – More than procurement, this covers full logistics prep.
✅ Ideal for New Trade Relationships – Gives suppliers liquidity while assuring buyers’ peace of mind.
✅ Protects Both Parties – Funds are only released once advance conditions and evidence are met.
✅ UCP 600 Compliant – Ensures global standardization and legal protection.
🔄 How Does a Green Clause LC Work?
1️⃣ Buyer Requests LC with Green Clause – Specific clause enables advance funding for storage/insurance
2️⃣ LC Issued via SWIFT MT700 – With advance clause included
3️⃣ Beneficiary Requests Advance – By submitting storage contract, insurance policy & request letter
4️⃣ Advance Released by Bank – Typically 10–30% of LC amount
5️⃣ Shipment Occurs – Beneficiary ships goods and submits full shipping documents
6️⃣ Final Payment Made – Upon compliance with post-shipment conditions.
🧾 Required Documents for Green Clause LC Issuance
- Completed LC Application Form
- Pro-Forma Invoice
- Trade License of the company
- Passport copy of main signatory
- Audited balance sheets (last 3 years)
- Bank Statements (last 6 months)
- Storage & Insurance Confirmation Documents
- Beneficiary Letter requesting advance
🛠 Step-by-Step Issuance Process
- Application Submission – You submit all required documentation.
- Draft LC Preparation – We prepare a Green Clause LC with specific terms.
- Review & Amendments – Buyer and seller approve final draft.
- Advance Disbursement – Bank disburses pre-shipment funds.
- Shipment & Document Compliance – Goods are shipped and final documents submitted.
- Final Settlement – Remaining payment is made upon Post-shipment compliance.
🌐 Our Trusted Issuing Banks & Financial Institutions for Green Clause LC
We partner with a global network of reliable institutions to issue your Green Clause LC securely tailored to complex trade scenarios:
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | Region |
|---|---|---|---|---|---|---|---|
| PG Asia Investment Bank Ltd | AINEMY22 | Flexible for pre-shipment funding | Limited global reach | 0.5% – 7% | 2–6 days | $250K | Asia |
| Dushanbe City Bank | LCMDTJ22 | Accessible for Central Asia exporters | Low international visibility | 0.5% – 7% | 2–6 days | $250K | Central Asia |
| Standard Commerce Bank Ltd | STDMDMDMXXX | US-backed credibility | Due diligence can be lengthy | 0.5% – 8% | 2–6 days | $500K | USA |
| Asia Pacific Investment Bank | ASPMMYKL | Good for recurring trade | Newer institution | 0.5% – 6% | 2–5 days | $300K | Asia |
| Digital Commercial Bank | – | Digital onboarding, fast processing | Limited acceptance | 0.5% – 6% | 1–4 days | $300K | USA |
| Credit Foncier IM UND Export GmbH | CFEGDE82 | EU compliance, structured LC issuance | Slower on amendments | 0.5% – 7% | 2–7 days | $500K | Europe |
| Sapelle International Bank Liberia Ltd | GNERLRLM | Suited for frontier market trade | Limited recognition | 0.5% – 8% | 3–7 days | $250K | Africa |
| Unibanque | UNBQGB22 | SME-friendly UK-based bank | Requires strong applicant profile | 0.5% – 7% | 2–6 days | $500K | UK |
| Al-Amanah Islamic Investment Bank | AIIPPHM1XXX | Sharia-compliant financing | Narrow global network | 0.5% – 7% | 2–6 days | $250K | Philippines |
| Point Bank | POITGB21 | UK-based, moderate compliance | Limited volume | 0.5% – 7% | 2–5 days | $300K | UK |
| Ace Investment Bank Ltd | AIBMMYKL | Rapid LC setup for short-term needs | Less preferred for large deals | 0.5% – 6% | 2–5 days | $250K | Asia |
| Tabarak Investment Capital Ltd | TIBIAEADXXX | UAE-based, structured finance | Niche operations | 0.5% – 6% | 2–5 days | $250K | UAE |
| United Bank for Investment | UNTVIQBAXXX | Regional strength in Iraq | Regulatory restrictions | 0.5% – 7% | 3–7 days | $250K | MENA |
| Golden Touch Investment Bank Ltd | GTIVMT2LXXX | High customization of LC clauses | Reputation still developing | 0.5% – 7% | 2–6 days | $250K | Offshore |
| BANCO Micro Capital | On Request | Available for micro and SME trade | Information upon request | 0.5% – 7% | 2–6 days | $100K | Flexible |
| Acumen Bank | On Request | Flexible LC models | Details upon request | 0.5% – 6% | 2–5 days | $250K | Flexible |
| United Trust Bank | On Request | Secure LC structuring | Confirmation case-by-case | 0.5% – 7% | 2–6 days | $300K | Flexible |
| UOB Global Capital Finance | On Request | Strong syndication support | Fees vary by deal size | 0.5% – 7% | 2–6 days | $500K | Global |
📩 Additional banks available upon request.
🎯 Green Clause LC vs Other LCs
| Instrument | Advance Allowed? | Covers Storage & Insurance? | Best Use Case |
|---|---|---|---|
| Red Clause LC | ✅ Yes | ❌ No | Goods procurement only |
| Green Clause LC | ✅ Yes | ✅ Yes | Full pre-shipment support |
| Sight LC | ❌ No | ❌ No | Immediate post-shipment pay |
| Usance LC | ❌ No | ❌ No | Deferred buyer payment |
💡 Why Choose NNRV for Green Clause LCs?
✔️ Pre-Shipment Structuring Expertise – Decades of trade finance experience
✔️ Fast Approvals – Advance funds within days of LC setup
✔️ Global SWIFT Network – Secure LC delivery across 40+ countries
✔️ UCP 600-Compliant – Guaranteed regulatory adherence
✔️ Tailored Clauses – Storage, insurance, and handling terms adapted to your project
✔️ From $250K to $100M+ – Flexible deal sizes for SME and enterprise clients
🔍 Why Choose a Green Clause LC?
✅ Pre-Shipment Financing Flexibility
Suppliers can access part of the payment in advance, enabling them to prepare, store, and insure goods before shipping.
✅ Lower Risk for Buyers
Funds are released under strict documentation and control, protecting buyers from misuse while helping suppliers perform.
✅ Accelerates Supply Chain Operations
By ensuring early funding, Green Clause LCs help minimize shipment delays due to financial constraints.
✅ Enhances Trust in New Trade Relationships
Especially useful when buyers and sellers are working together for the first time.
📈 Real Impact: Why Green Clause LCs Matter
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💬 Real Testimonials
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🧠 “Without NNRV’s Green Clause LC, our supplier couldn’t start production. The $200K advance saved our timeline.”– Thierry K. Equipment Importer – Côte d’Ivoire
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🧠 “Fast, efficient, and custom-tailored. Best LC team we’ve worked with.– Armina T ». Agroexport – UAE
❓ Frequently Asked Questions
1. Can I receive funds before shipment?
✅ Yes. Upon document validation (e.g., warehouse receipts, insurance), an advance is issued.
2. What’s the difference between Green and Red Clause LC?
🟢 Green covers storage + insurance, 🔴 Red covers procurement only.
3. How much can I get in advance?
Typically up to 60–70% of the LC value, depending on documentation.
4. Can SMEs use Green Clause LCs?
Yes. We support small and mid-sized traders with structured pre-shipment financing.
5. Is the LC recognized globally?
Yes—issued via SWIFT MT700 and governed by UCP 600.
🔗 Related Services
📖 Strategic Blog Posts
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Green Clause LC vs Red Clause LC – Key Differences
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How Green Clause LCs Unlock Africa’s Export Potential
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Pre-Shipment Financing: Why More Suppliers Request It in 2025
🚀 Ready to Empower Your Supply Chain?
📩 Request a Custom Green Clause LC Consultation Now
☎️ Talk to a Structuring Expert | 🌍 Trusted in 40+ Countries | ✅ Fast Advance Funding Secured via SWIFT