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Trade Finance

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

Articles

MT 710 Explained: Advice of a Third Bank's Documentary Credit

What happens when an advising bank has to pass on a Letter of Credit it received through a channel other than SWIFT.

02 Sep 2026 · 2 min read
MT 707 Explained: Amendment to a Documentary Credit

How changes to an already-issued Letter of Credit — a new expiry, a revised amount, added conditions — get communicated.

01 Sep 2026 · 2 min read
MT 705 Explained: Pre-Advice of a Documentary Credit

Why an issuing bank sends a short heads-up before the full Letter of Credit follows as an MT 700.

31 Aug 2026 · 2 min read
MT 420 Explained: Tracer (Collections)

The chaser message a remitting bank sends when it has not heard back on the status of a collection.

30 Aug 2026 · 2 min read
MT 416 Explained: Advice of Non-Payment/Non-Acceptance

The SWIFT alert sent when a drawee refuses to pay or accept a draft under a documentary or clean collection.

29 Aug 2026 · 2 min read
MT 410 Explained: Acknowledgement (Collections)

How the collecting bank confirms it has received the documents sent under a collection instruction.

28 Aug 2026 · 2 min read
MT 400 Explained: Advice of Payment (Collections)

How the collecting bank tells the remitting bank that a documentary or clean collection has been paid.

27 Aug 2026 · 2 min read
MT 700 Explained: Every Field in a SWIFT Documentary Credit Message

A field-by-field walkthrough of MT 700, the SWIFT message that opens a Letter of Credit — what 40A, 41a, 42C, 46A, 48, and every other field actually mean.

11 Aug 2026 · 6 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.