What is an MT700?
MT700 is the SWIFT message type used to issue a documentary credit. When a buyer's bank opens a letter of credit, it transmits it to the seller's bank as an MT700 — so in practice the MT700 is the letter of credit, in its transmitted form.
At a glance
| Term | MT-700 |
|---|---|
| Definition | SWIFT message used to issue a documentary letter of credit between banks. |
| Category | Payment & banking |
| Related terms | LC (Letter of Credit), MT-103, MT-799, T/T Payment, POF (Proof of Funds), BCL (Bank Comfort Letter), Performance Bond |
What it is used for
The MT700 communicates every operative term of the credit: amount, expiry, the documents required, the latest shipment date, the presentation period and which Incoterms rule and port apply.
Key points
- Sent from the issuing bank to the advising or confirming bank in the beneficiary's country.
- Structured in numbered fields — for example 32B for currency and amount, 44C for latest shipment date, 46A for documents required, 47A for additional conditions.
- Field 40A states the form of the credit, such as irrevocable or irrevocable transferable.
- Amendments are issued afterwards as MT707 messages.
What to watch for
- Review field 46A and 47A line by line before shipping: those are the conditions your documents must satisfy exactly.
- Check the latest shipment date and the presentation period are achievable with your actual logistics.
- Ask your bank to explain any condition you cannot evidence with a document you control — those clauses cause rejected presentations.
Frequently asked questions
Is an MT700 the same as a letter of credit?
Effectively yes. The MT700 is the SWIFT message that carries the credit between banks; its content is the credit's terms.
Can an MT700 be amended?
Yes, through an MT707 amendment, which normally requires agreement from the beneficiary as well as the applicant and issuing bank.
Who receives the MT700?
The advising bank in the seller's country, which authenticates it and passes the credit to the seller.
Related terms
Lodfy verifies every company on the platform — registration, ownership and sanctions screening — before they can trade.