Tag Archive: mt760 definition


How MT760 works?

Who is MT-760?

ANSWER: MT-760 is the trust funds service provider who offers full-service for timely credit enhancement such as Standby Letter of Credit Bank Guarantee. he MT-760 is a type of SWIFT message that is sometimes requested in sugar trading because it functions much like a Bank Guarantee, although it carries with it a much higher level of risk for the issuer (usually the buyer), and a reduced level of risk for the recipient (the seller). Essentially, a MT-760 is a SWIFT message which guarantees that a bank will make payment in favor of a client of another bank. When a MT-760 is issued, the issuing bank puts a hold on its client’s funds, thereby ensuring that the funds are in place to make payment to the recipient of the MT-760.

Proof Of funds Service 

Proof of Funds service is not a loan, but is a perfect, inexpensive and fast way to add strength to your current financial profile, show reserves or buy time in your transactions. The Swift terminology is MT799. Different formats may include bank letters, phone/fax verification, online account access, verification of deposit form (VOD), bank to bank Swift, Certificates of Deposit (CD’s) and/or account statements. We can arrange equity and debt-secured accounts for “Proof of Funds” uses on a fixed-return basis to facilitate various funding requirements, providing you the capability to meet on-going project needs. The investment process is simple and secure, and can be completed in as little as two (2) banking days depending on the type of account needed. We can arrange funding for various types of accounts for a broad range of requirements. All accounts are verifiable through written verification of deposit, with other confirmation options available including verbal and electronic verification. Specialty accounts are also available providing confirmations utilizing SWIFT MT999, SWIFT MT799 and SWIFT MT760 message formats. Rate-of-return requirements vary, dependent upon the amount of funds provided and the verification type needed.

MT 799 confirmation 

An account with the SWIFT MT799 capability allows bank-to-bank SWIFT electronic verification for Proof of Funds in compliance with the SWIFT Category 7 “Treasury Markets & Syndication” message types. Often there is a misconception that a particular circumstance requires a SWIFT MT760 message, when in fact, the SWIFT MT799 format provides the required bank confirmation for the application.

There is a $1 million minimum account size for a SWIFT MT799, and additional costs apply.


There is a $1 million minimum account size for a SWIFT MT799, and additional costs apply.

SWIFT MT 799 –  Sample MT-799 PDF

The MT-799 is a free format SWIFT message type in which a banking institution confirms that funds are in place to cover a potential trade. This can, on occasion, be used as an irrevocable undertaking, depending on the language used in the MT-799, but is not a promise to pay or any form of bank guarantee in its standard format. The function of the MT-799 is simply to assure the seller that the buyer does have the necessary funds to complete the trade.

An account with the SWIFT MT-799 capability allows bank-to-bank SWIFT electronic verification for Proof of Funds in compliance with the SWIFT Category 7 “Treasury Markets & Syndication” message types. Often there is a misconception that a particular circumstance requires a SWIFT MT760 message, when in fact, the SWIFT MT-799 format provides the required bank confirmation for the application. There is a $1 million minimum account size for a SWIFT MT-799, and additional costs apply.
The MT-799 is usually issued before a contract is signed and before a letter of credit or bank guarantee is issued. After the MT-799 has been received by the seller’s bank, it is then normally the responsibility of the seller’s bank to send a POP (proof of product) to the buyer’s bank, at which point the trade continues towards commencement.
The actual payment method commonly used is a documentary letter of credit or an MT-103 (wire transfer), which the seller presents to the issuing or confirming bank along with shipping documents. Once the bank confirms the documents, the seller is then paid. An alternative method is to use a bank guarantee in place of a letter of credit. It is normally at the seller’s discretion which method of payment is used.

The short answer is that you don’t. Approach your bank, and make an arrangement with them to have an MT-799 wired to the seller’s bank. Some banks are reluctant to issue MT-799’s, as these make them liable for the full cost of the trade, which can sometimes be in the millions. A bank will normally not issue an MT-799 without some form of collateral to secure their own interests, so be prepared to put up a hefty amount of collateral.

An MT-799 is an automated message sent electronically from one bank to another, so you won’t really ’see’ an MT-799 at all. The paperwork associated with an MT-799 will vary from bank to bank, though most banks follow a similar format.    
 


You will need the following information to send an MT-799.
• Name of the advising bank.
• LC Number.
• LC Amount.
• Tenor of Draft.
• Latest shipment date.
• Person or entity liable for confirmation fee.
• Whether the LC is restricted for negotiation or not.
• A description of the merchandise.
• Port and/or country where product will be loaded.
• Port and/or country where product will be unloaded.


Daniel Goodman 
CALL ME DIRECT 1-(972)704-1696 

www.blockedfunds.com 

BlockedFunds.com is the premiere agency for equity and debt-secured cash accounts, on a fixed-return basis, for Proof of Funds uses. We provide organizations and individuals the capability to complete long-term financing or meet other on-going project needs.

Toll Free: +1(888)625-7518
Toll Free Fax: +1(888)625-7518
Local Phone +1(214)296-9552
International +1(214)716-5018
International FAX +1(214)613-1640

Email:  info@blockedfunds.com 
Skype: goodman.atoztask 
Web : www.blockedfunds.com 

How Do I Get A MT-760?

A MT-760 can be obtained from your bank. Some banks are not willing to issue MT-760’s however, so if an MT-760 is absolutely essential, you may have to be prepared to move your funds to another banking institution. It is wise to inquire at your bank before committing to any sale that requires a MT-760 as part of its terms and conditions.

Blockedfunds.com is in the leased funds business, we have been doing this for over 5 years and deal with the top banks, HSBC, Dutch Bank, Barclay’s, Bank of America, mostly any bank in the world in every continent.  We understand each transaction and work to create a win-win result for our clients.  We manage over $5B in funds, and can fulfill most funding requests, in 2-14 days.  We can issue MT202, MT799, MT760, bank gaurantees, sblcs, cash accounts for trade or credit enhancement purposes.

Blockedfunds.com
2711 N. Haskell Ave
Suite 550
Dallas, TX 75204
Local Phone: 1-214-296-9552
Local Fax: 1-214-296-9552
Toll Free: 1-888-625-7518
International: +1 214-716-5018
Toll Free Fax:  1-888-625-7518
International Fax: +1 214-613-1640
Email: info@blockedfunds.com
Website http://www.blockedfunds.com
Skype: goodman.atoztask
Help line: 972-704-1696

In a simple way No.  Once a MT-760 has been issued, it is not negotiable. For this reason, many sugar traders prefer a Letter of Credit, which is negotiable and can be amended in response to unforeseen changes in circumstances, such as a delayed shipping schedule, lower production than anticipated, and other such events.

Blockedfunds.com is in the leased funds business, we have been doing this for over 5 years and deal with the top banks, HSBC, Dutch Bank, Barclay’s, Bank of America, mostly any bank in the world in every continent.  We understand each transaction and work to create a win-win result for our clients.  We manage over $5B in funds, and can fulfill most funding requests, in 2-14 days.  We can issue MT202, MT799, MT760, bank gaurantees, sblcs, cash accounts for trade or credit enhancement purposes.

Blockedfunds.com
2711 N. Haskell Ave
Suite 550
Dallas, TX 75204
Local Phone: 1-214-296-9552
Local Fax: 1-214-296-9552
Toll Free: 1-888-625-7518
International: +1 214-716-5018
Toll Free Fax:  1-888-625-7518
International Fax: +1 214-613-1640
Email: info@blockedfunds.com
Website http://www.blockedfunds.com
Skype: goodman.atoztask
Help line: 972-704-1696

When an MT-760 is issued, the issuing bank puts a hold on the client’s funds, blocking the client from using them. The funds are then at the disposal of the person the MT-760 was issued in favor of. For this reason it is not wise to issue an MT-760 before receiving product, as this can mean a large financial loss for absolutely no gain. In some cases, unscrupulous traders can even use the MT-760 to open a line of credit, which they then default on, leaving the issuer of the MT-760 out of pocket.

Blockedfunds.com is in the leased funds business, we have been doing this for over 5 years and deal with the top banks, HSBC, Dutch Bank, Barclay’s, Bank of America, mostly any bank in the world in every continent.  We understand each transaction and work to create a win-win result for our clients.  We manage over $5B in funds, and can fulfill most funding requests, in 2-14 days.  We can issue MT202, MT799, MT760, bank gaurantees, sblcs, cash accounts for trade or credit enhancement purposes.

Blockedfunds.com
2711 N. Haskell Ave
Suite 550
Dallas, TX 75204
Local Phone: 1-214-296-9552
Local Fax: 1-214-296-9552
Toll Free: 1-888-625-7518
International: +1 214-716-5018
Toll Free Fax:  1-888-625-7518
International Fax: +1 214-613-1640
Email: info@blockedfunds.com
Website http://www.blockedfunds.com
Skype: goodman.atoztask
Help line: 972-704-1696

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