Differentiate the following in brief: (iii) "Red Clause" Credit and "Green Clause" Credit.

"Red Clause" Credit "Green Clause" Credit In a Letter of Credit a special clause allows the beneficiary (exporter) to avail of a pre- shipment advance (a type of export finance granted to an exporter, prior to the export of goods). This special clause used to be printed (highlighted in red colour, hence it is called 'Red Clause' Credit. The exporter is entitled for an advance for storage (warehouse) facilities of goods. The advance would be granted only when the goods to be shipped have been ware- housed, and against an undertaking by the exporter that the transportation documents would be delivered by an agreement date.