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Trade Finance

Letters of credit, bank guarantees, and international trade settlement.

Articles

MT 767 Explained: Guarantee Amendment

How changes to an already-issued bank guarantee or standby LC — a new amount, extended validity — are communicated.

10 Sep 2026 · 2 min read
MT 760 Explained: Guarantee / Standby Letter of Credit

How a bank issues an independent guarantee or standby LC — a promise to pay only if the applicant fails to perform.

09 Sep 2026 · 2 min read
MT 752 Explained: Authorization to Pay, Accept or Negotiate

The issuing bank's green light to honour documents that were flagged as discrepant, after the applicant waives them.

08 Sep 2026 · 2 min read
MT 750 Explained: Advice of Discrepancy

How a bank flags discrepant documents and asks the issuing bank for permission to honour them anyway.

07 Sep 2026 · 2 min read
Letter of Credit Basics: How an LC Protects Both Sides of a Trade

A Letter of Credit shifts payment risk from the buyer to a bank. Here is how the LC lifecycle works, who the parties are, and why documents matter more than the goods themselves.

06 Sep 2026 · 2 min read
MT 742 Explained: Reimbursement Claim

How the bank that paid under a Letter of Credit actually gets its money back from the reimbursing bank.

06 Sep 2026 · 2 min read
MT 740 Explained: Authorization to Reimburse

How an issuing bank instructs a reimbursing bank to honour claims from the bank that pays under a Letter of Credit.

05 Sep 2026 · 2 min read
MT 734 Explained: Advice of Refusal

How a bank formally refuses to honour documents presented under a Letter of Credit, and lists exactly why.

04 Sep 2026 · 2 min read
MT 730 Explained: Acknowledgement (Documentary Credit)

How banks confirm receipt of a Letter of Credit message and report their own handling charges.

03 Sep 2026 · 2 min read

Frequently Asked Questions

A mismatch is called a "discrepancy." The issuing bank can refuse payment until the discrepancy is corrected or the buyer waives it, so exporters should check documents carefully before presentation.
No. An LC is a primary payment mechanism used to settle a trade, while a Bank Guarantee is a secondary commitment that is only invoked if the applicant fails to perform an obligation.