The red letter of credit refers to the loan provided by the applicant from the bank to the beneficiary before shipment. The beneficiary shall guarantee to negotiate with the prepayment bank after shipment. In the early days, letters of credit were expressed in red, so they were called red terms. But it is no longer used.

Another way is to package loans.

When the exporter receives the letter of credit issued by the buyer, if he needs liquidity to pay for the purchase, shipment or production of materials, he can first give the letter of credit to the bank as proof of repayment and mortgage, so as to obtain financing from the bank before shipment.

Generally speaking, if the export letter of credit is 400,000 yuan, the exporter will hand it over to the bank for packaging loan, and the bank will usually make 50% financing, that is, the bank will advance 200,000 yuan to the exporter. After the exporter purchases and produces, he will ship the goods according to the relevant export letter of credit, and then send the relevant documents and documents to the bank for collection. The recovered money will be returned to the bank for packaged loans, and the rest will be returned to the exporter's account.

1) An irrevocable letter of credit is an irrevocable letter of credit without the consent of the parties concerned. The letter of credit is issued by the bank as an intermediary and promises to pay, provided that the beneficiary completes the relevant documents in accordance with the terms and time limit of the letter of credit.

2）& amp； 3) No table. Reference: banks, v. good,