This letter is referred to the third pay customer and permits them to access the amount of credit letter as per the request made by one of the customer. This letter conveys the third party customer about the clauses to withdraw the money and also gives them information regarding the amountthat has to be repaid.
Table of Contents
Red Clause Letter Of Credit Writing Tips:
- Use very polite language, yet the tone has to be completely professional.
- Make use of particular jargon. Do not use very simple wordings.
- Write all the needed details, the amount and the mode of repayment. Write clearly about how the repayment has to be done.
Red Clause Letter Of Credit Template
Subject – ________(mention the purpose)
Dear ____(mention the purpose)
I am writing this letter to you as we have received a request from ____(name of the company) who is one of our customers, we feel very proud to let you know that our senior authorities have decided to give you financial backing to complete your continuing project.Consequently we are issuing a red clause letter of credit to revathi industries of Rs. ____(mention the amount) .As per the letter of credit; our senior management authorises to withdraw the amount. In order to withdraw the amount, you can daw demand draft in favour of ____(name of bank), branch ____(mention the branch) surrounded by the identified time of letter of credit. You being our important customer, we would like to help you as and when you need our help. We are sure that you will go within the terms and conditions of the company and make repayment of the amount consistent with the agreement.
Red Clause Letter Of Credit Sample, Email and Example/Format
Renuka industries ltd.
Subject: Red clause letter of credit
This letter is with reference to the request that we have received from our customer, revathi industries, we take this opportunity to make you aware that our higher management has agreed to give you financial support for the accomplishment of your on-going project. As a result we issue a red clause letter of credit in the name of revathi industries for an amount of Rs.20000/-.According to the letter of credit; our higher authority sanctions you to withdraw the said amount. To withdraw the said amount, you can present a demand draft at Bank of Maharashtra, Navi Mumbai Branch within the specified time of letter of credit. You are our valued customer and we would like to serve you any time. We hope you will agree to the terms and conditions of the company and pay back the amount as per the agreement.
Dear Mr. Kamath,
I am writing to you with reference to the request made by our customer, Exide Manufacturers, we are happy to inform you that our senior officials are happy to provide you financial support for the completion of the project. To that effect we establish a Red Clause letter of credit in favor Exide Manufacturers for Twenty Thousand Rupees (Rs. 20,000).
As per the letter of credit our senior officials authorize to withdraw the said amount. You can withdraw the amount by presenting the Demand Draft at Deshkmukh Bank, Greater Noida Branch within the stipulated time of the Letter of credit.
We are happy to serve and hope that you would adhere to the terms and conditions of our company and repay us the amount as per agreed.
For Deshmukh Bank
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