Important Disclaimer: This content is for informational purposes. FG Capital Advisors does not issue or confirm LCs; all transactions require bank approval, credit review and SWIFT messaging protocols.
MT700 Documentary LC Issuance: Fast, Compliant and Transparent
FG Capital Advisors leverages deep trade‐finance expertise and an extensive bank network to streamline MT700 issuance. Our process reduces documentary discrepancies, accelerates credit approval and delivers reliable payment guarantees in as few as three business days.
What Is an MT700 Documentary LC?
An MT700 is a SWIFT message format used by banks to issue a documentary Letter of Credit under UCP 600. It guarantees payment upon submission of compliant shipping documents, providing:
- Supplier confidence that funds are secured
- Mitigation of buyer default risk
- Uniform standards for cross‐border trade
Deepening UCP 600 Context
UCP 600 governs documentary credits worldwide. Key provisions include:
- Article 14: Banks pay only on presentation of documents that exactly match LC terms. Even minor typos can trigger a refusal.
- Article 18: Banks examine documents within five banking days. Delays here extend your funding timeline.
- Article 19: Banks may refuse documents for discrepancies but must advise within a set period, enabling prompt correction.
Understanding these rules is essential to reduce documentary discrepancies and ensure swift payment.
Streamlined MT700 Workflow
Our five-step process cuts lead times to 3–5 business days:
| Step | Action | Typical Timeline |
|---|---|---|
| 1. Client Setup | Gather KYC, UBO details, corporate and financials | Day 0–1 |
| 2. Document Validation | Pre-check contract, invoice and transport docs against LC draft | Day 1 |
| 3. Bank RFP & Quotes | Issue standardized MT700 term‐sheet request to partner banks | Day 2–3 |
| 4. SWIFT MT700 Issuance | Bank issues and advises/confirms LC via SWIFT | Day 3–5 |
| 5. Monitoring & Amendments | Track presentation status; manage renewals/amendments | Ongoing |
Frequently Asked Questions
Q: What if my supplier’s documents contain minor errors?
A: We identify potential discrepancies in advance and work with your supplier to correct them before submission, avoiding hold-ups under Article 14 of UCP 600.
Q: Can I amend LC terms after issuance?
A: Yes, requesting an amendment via SWIFT MT707 is possible. Our team manages the communication and tracks approval to minimize delays.
Q: What collateral options exist beyond cash?
A: We structure standby LCs, warehouse‐receipt pledges and SPV‐backed facilities to reduce cash margin and preserve your credit lines.
Q: How are our fees structured?
A: All issuance and advising/confirmation fees are negotiated upfront and detailed in your term sheet—no surprises at closing.
FG Capital Advisors does not act as an issuing or confirming bank. All LCs are subject to bank credit approval, compliance checks and SWIFT protocols.
