Do you know the difference between MT799 and MT760? The main difference between SWIFT MT799 & MT760 is when they are transmitted. MT799 is sent before the MT760. Whereas, MT799 acts as proof to prove the financial strength of the buyer & the SBLC is used to assure the financial commitment towards the sellers.
If your business makes use of Bank Comfort Letter, Standby LC, or any other forms of Guarantees, then the term MT799 and MT760 may have been used. Further, these Swift messages are usually sent between banks with the aim of showing proof of funds and payment guarantees. Now, let us see about SWIFT MT760, SWIFT MT799 & the main difference between both these SWIFT Codes.
MT760 is an inter-bank message using which the banks can communicate. In dealing with Bank Guarantees and Standby Letter of Credit, you might hear of SWIFT MT760. This Swift message is sent between the banks involved in the issuance of required financial instruments. Also, this MT760 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 relay via authenticated SWIFT MT 760 include – Standby LC, Bank Guarantees such as Advance Payment Guarantee, Performance Guarantee, and Bid Bond Guarantee.
MT799 is an authorized SWIFT Code sent between banks to confirm the financial capability of the buyer to do trade transactions. You must aware that MT799 doesn’t give any payment assurance; also, not used for transferring funds. Rather, this swift message acts as a financial capability letter. i,e, it describes the buyer’s ability to sign the new trade contract. Also, BCL MT799 is issued right before the contract is signed; or, before the issuance of any financial instruments.
Upon the relay of MT799, the seller sends the buyer a proof of product (POP) to show the availability of stock as per the agreed contract.
Both MT760 and MT799 helps to carry out global and domestic trade transactions. But anyhow, there are a few differences between MT799 and MT760 as follows:
Usually, sellers demand buyers to provide MT799 to verify the financial status of the client. This authenticated code from the bank states that the buyer has enough funds available to embark on the new project or trade deal.
Whereas issued by a bank on behalf of the buyer & in favor of the seller, MT760 assures the guarantee of payment for the supplied goods; in case of any default by the buyer in making the payment.
When it comes to availing any of the Bank Instrument, usually buyers contacts their banks. But the banks will not issue such instruments without some form of collateral or cash margin.
But we, the trade finance providers in Dubai understand the importance of trade finance for traders and assisting them to avail the instrument from good repute banks without availing cash margin or collateral.
Unlike banking sectors and other private lenders, we will not follow a stringent process or lengthy paper works. Our issuance process is very simple & easy; i.e. you can avail the required instrument issued in just 2 days!
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? Whatever your requirements are, you can always rely on us to find out the best solution for your trade needs.
The Website Content is DMCA Protected.