Red Clause Letter of Credit
Morgan Chase Bank
567 Down Inn Street
North Success 2345
Subject: Red clause letter of credit
This letter is to request you to initiate an advance to the buyer so that he can pay for the initial expenses incurred by us. The advance will be to cover the cost of delivery of goods exported by us.
We, at Iron Manufacturers based in Italy specialize in manufacturing iron scraps and supply that to Real Steel Limited who has applied for credit to make purchase from your financial institution. I believe that Real Steel Limited has mentioned about us in the letter of credit.
I understand that by doing so the buyer will be bearing a financial risk as he is paying us an unsecured loan, but at the same time we also need cover the deliver cost. I hope you would consider the above request.