Also known as anticipatory credits. A letter of credit which contains a clause authorising the nominated bank to make advances to the seller against security (such as a payment guarantee from a third party or the pre-shipment storage of the goods in the name of the nominated bank or the issuing bank) before shipment /presentation of documents. If the seller fails to present the documents, the issuing bank’s or buyer’s reimbursement obligations can be recovered through enforcement of the security.