Pre-Advice Service for LCs & Guarantees
Pre-Advice Service for LCs and Guarantees
- * Importers arranging LCs for machinery, FMCG, agri
- * Exporters seeking comfort ahead of shipment
- * Contractors needing APG or performance bond confirmation
- * Traders closing delivery slots with time-critical issuances
- * Counterparty asks for a bank pre-advice before loading or mobilization
- * Tender rules allow pre-advice before issuing the APG or PB
- * Final wording is agreed and issuance date is scheduled
- * All internal approvals and fees are cleared for issue
- * MT799 pre-advice tied to an MT700 LC or MT760 guarantee
- * Pre-advice letters on issuer letterhead where accepted
- * Exact terms mirrored from the operative draft
- * Timed follow-on issuance with SWIFT details
Pre-advice explained
| Topic | What it is | What it is not |
|---|---|---|
| Purpose | A bank notice that an LC or guarantee will be issued on stated terms and date | A payment undertaking or security by itself |
| Form | SWIFT MT799 or signed bank letter that mirrors the final instrument | Stand-alone RWA, PoF, or monetizable paper |
| Rules | Used with UCP 600 LCs, URDG 758 guarantees, ISP98 standby LCs | A substitute for MT700 or MT760 |
| Timing | Sent only when the issuer is ready to issue without delay | Something that goes out before approvals or collateral |
Message options and delivery
Bank-to-bank free format referencing the operative MT700 or MT760. Includes applicant, beneficiary, amount, expiry, and issue window.
Issuer letterhead where the counterparty accepts letters. Signed, with wording that mirrors the final text and timing.
Operative MT700 LC, MT760 guarantee, or ISP98 standby LC sent within the agreed window. No gap between pre-advice and issue.
What clears credit
- * Full KYC and sanctions checks
- * Operative draft agreed line by line
- * Issuer approvals and fee settlement
- * Counter-indemnity and margin where required
- * Account control and cargo or contract evidence
- * Buyer or beneficiary details verified
- * No stand-alone RWA or PoF letters
- * No monetization schemes
- * Pre-advice always followed by an operative message
What we need to send pre-advice
- * Applicant and beneficiary legal names and addresses
- * Amount, currency, expiry, latest shipment or milestone dates
- * Goods or contract summary and Incoterms where relevant
- * LC under UCP 600 or SBLC under ISP98 or URDG 758 guarantee
- * Confirming bank or advising bank details if any
- * Exact text to be mirrored in the pre-advice
- * SWIFT details for the beneficiary bank
- * Window for the operative issuance after pre-advice
- * Any portal or courier requirements
Process to pre-advice and issue
KYC cleared. Operative text agreed. Issuance window set. Fees and margin settled.
Issuer sends MT799 or signed letter to the named bank or beneficiary. Wording mirrors the final instrument.
MT700, MT760, or ISP98 standby sent within the agreed window. Advising or confirming bank engaged as planned.
We track advising, confirmation, amendments, and delivery steps so cargo or mobilization proceeds on time.
Pre-advice FAQ
No. Pre-advice goes out only when the operative instrument is approved and scheduled.
Will pre-advice release goods or cashNo. It is a notice, not a payment undertaking. Shipment or advances require the operative message.
No. We do not provide stand-alone comfort letters. We arrange real bank messages tied to real issuance.
Can the pre-advice be amendedYes if terms change before issuance. We resend the corrected message and keep the schedule tight.
Ready to send a clean pre-advice
Share the operative draft, beneficiary bank details, and issuance window. We will respond with terms and a checklist to release pre-advice and issue on time.
Request Pre-Advice ServiceWe act as an arranger on a best efforts basis through regulated partners. Eligibility depends on KYC and AML, sanctions screening, legal review of wording, and approval by issuing banks. Pre-advice is not a commitment to pay and is always followed by an operative instrument.
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