Banking at a Glance
Bank Swift Messages used by Real Buyers and Sellers
SWIFT MT760 SBLC
In order to transfer messages, SWIFT developed nine different types of messages. The MT760 is one of those messaging options. Usually, it is a message sent at the request of the account holder, from one bank to another. The account holder wants to show the other bank there are funds available to cover a particular transaction. In order to make this message happen, the account holder agrees that their bank will hold the same amount of funds as security for the transaction. This security feature makes the MT760 a cash-
Some banks in the United States do not willingly issue MT760 messages. Before initiating such a transaction, you need to verify that your bank will handle those transactions. There are fees associated with these transactions. It can run as high as 1% (even 2% has been found in the market) of the transaction amount. This transaction is common for amounts of $1,000,000 or above.
A common use for the MT760 transaction is to back up large orders of product. The guarantee of funds gives the supplier confidence of payment for the order.
Another common use of the MT760 is to back up large projects of many different sorts. To get that, you need to have a good project to begin with. Then you need to have a bank willing to issue the MT760. You will have to cover all the costs of the fees associated with it. You also need to know how you will handle closing the transaction at the end of the project.