Do you have an urgent requirement for Sugar to meet the demands of the local market? Have you found a supplier from Brazil? And is your supplier asking you to prove your financial strength to get an assurance that you are capable to pay for the supplied goods? Using SWIFT MT799 – Letter of Comfort will be the right choice for you; as it shows your credit strength to your supplier. But, how does SWIFT MT799 work? This is what we are going to discuss in this blog.
SWIFT is an authenticated free format message which is used by banks to communicate with other banks in a safe and secure way. Accordingly, the message code SWIFT MT799 is mostly used for showing proof of funds; which states that the buyer has enough cash funds to purchase the required commodity.
Further, it should be noted that this kind of swift message will not give any kind of guarantee or assurance to the counterparties; in terms of payment.
For instance – If a buyer wants to purchase bulk commodities from a supplier; then, they need to prove their financial strength by showing a Letter of Comfort from their bank. And so, this Comfort Letter shows that the buyer has enough funds available in their bank account to proceed with the importation of bulk goods. Accordingly, after reviewing the MT799, the supplier will forward a POP (Proof of Product) to the buyer’s bank. Further, this acts as proof that the products are readily available for shipment.
Finally, after the receipt of POF and POP, the supplier and the buyer will sign the contract; and then proceed with the conclusion of the trade deal. Further, with MT799 as a proof of fund, you can either apply for an LC MT700 or a Standby LC – SBLC MT760 as per your requirement.
Only the banks with SWIFT Facilities can issue the required MT799. So, first, you can try with your personal bank; or else, you can get help from trade finance providers to get the required MT799.
In addition, banks will not issue MT799 without any kind of collateral. That is, to get BCL MT799, you need to provide a certain kind of security, or you need to block your cash funds. In case, if you don’t want to block your cash funds or you don’t have any collateral in hand to provide your bank; then, contact us today! We can assist you by providing the required MT799 without collateral.
Being a leading trade finance provider, Bronze Wing Trading in Dubai facilitates the required Bank Instruments at ZERO Collateral by using our own trade finance facilities available at European Banks.
Submit your BCL – SWIFT MT799 request to us & get proof that you are financially stable to conclude your trade deals!