If your business makes use of Bank Comfort Letter, Standby LC, or any other forms of Guarantees, then the term MT-799 and MT-760 may have been used for. Swift messages are usually sent between banks with the aim of showing proof of funds and payment guarantee. Even though, both SWIFT codes play the role of similar purposes, but there are some major differences between MT-799 and MT-760.
In dealing with Bank Guarantees and Standby Letter of Credit, you may hear of SWIFT MT-760. This Swift message sent between banks involved in the issuance of required financial instruments. Also, this MT-760 assures the counterparty (Seller or Project Owner) that the applicant (Buyer or Contractor) will oblige the terms as per the agreed contract without any default.
The financial instruments that relayed via authenticated SWIFT MT 760 are Standby LC, Bank Guarantees such as Advance Payment Guarantee, Performance Guarantee, and Bid Bond Guarantee.
MT-799 indicates a type of swift message that banks used to communicate securely with each other. You must aware that MT-799 doesn’t give any payment assurance; and also, not used for transferring funds. Rather, this swift message mostly used for showing proof of funds or proof of deposits or act as a financial capability letter. Also, MT-799 is issued right before the contract signed; or, before any of the financial instruments issued.
Upon the relay of MT-799, the seller sends the buyer a proof of product (POP) to show the availability of stock as per the agreed contract.
Even though, both MT-799 and MT-760 used for trade transactions, the main difference lays on when they are sent? As stated above, MT 799 relayed before the issuance of MT 760.
Further, MT 799 shows the financial status of the client. Also, it acts as a verification issued by one bank to the other to confirm the financial capability of their customers to handle the business. Whereas, MT 760 acts as a payment guarantee of the supplied goods.
Usually, banks that have a SWIFT Capability can issue MT-760 and MT-799. And, they will not issue such swifts without some type of collateral or cash margin.
So, if you don’t have cash funds or tangible collateral in hand, then you can’t be able to avail of these swift messages from your bank. In such cases, you can use the services provided by the Trade Finance Providers like us. Unlike banking sectors, we will never demand any collateral or cash margin to issue the MT 760 and MT 799 on your behalf.
Do you require MT 799 to show your financial stability to your seller? Or, are you in need of a MT 760 guarantee to assure your payment or performance to your supplier or project owner? Contact us today!