What is the difference between MT760 and MT700?

MT700 is used to indicate the terms and conditions of a commercial documentary credit or a standby letter of credit which has been originated by the Sender (issuing bank). MT760 is is sent between banks involved in the issuance of a demand guarantee or a standby letter of credit.

What is MT734 swift message?

Scope of the message MT734 This message is sent by the issuing bank to the bank from which it has received documents related to a documentary credit. It may also be sent by the bank nominated to pay/accept/negotiate/incur a deferred payment undertaking to the bank from which it has received documents.

Which swift message is used if LC exceeds the maximum input message length of MT700?

Documentary Credit
MT 701 Issue of a Documentary Credit (continuation) This message is sent in addition to an MT 700 Issue of a Documentary Credit, when the information in the documentary credit exceeds the maximum input message length of the MT 700.

What is Field 42P in LC?

Field 42P: Deferred Payment Details is a field in MT 700 swift message type that is used to specify the payment date or method for its determination in a documentary credit which is available by deferred payment only. This is an optional field.

Which is better LC or SBLC?

While LC is used as a primary method of payment, SBLC is used when there is buyer’s non-performance during the sale. Benefit of using LC & SBLC is that, the buyer gets an assurance of receiving his product or merchandise on time, and the seller gets assurance of being paid on time on completion of the job.

What is MT700 swift message?

MT 700 is a special swift message type that is used by issuing banks when issuing a letter of credit. MT 700 message is sent by the issuing bank to the advising bank. It is used to indicate the terms and conditions of a documentary credit which has been originated by the Sender (issuing bank).

What are the different types of swift messages?

SWIFT groups message types into the following categories:

• Customer Payments and Cheques.
• Financial Institution Transfers.
• Treasury Markets: Foreign Exchange and Derivatives.
• Collections and Cash Letters.
• Securities Markets.
• Treasury Markets: Precious Metals and Syndications.
• Documentary Credits and Guarantees.

What is period of presentation in LC?

The presentation period can be defined as a period of time which starts with the issuance of the letter of credit and ends either with the expiry date of the letter of credit or else with the expiry of the allowed period time commencing after the date of shipment in case presentation contains a transport document.

Is LC same as bank guarantee?

A bank guarantee is a promise from a lending institution that ensures the bank will step up if a debtor can’t cover a debt. Letters of credit are also financial promises on behalf of one party in a transaction and are especially significant in international trade.