Swift is a provider of secure message platform for financial institutions mainly for banks.<\/p>\n
Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.<\/p>\n
For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.<\/p>\n
Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.<\/p>\n
What is MT 705 Pre-Advice of a Documentary Credit in Trade Finance?<\/strong><\/p>\n MT 705 is a special swift message type that is used by issuing banks when issuing a pre-advice of a letter of credit.<\/p>\n An issuing bank sends the terms and conditions of the documentary credit briefly<\/strong> with a MT 705 Pre-Advice of a Documentary Credit swift message type.<\/p>\n The pre-advice is not an operative instrument.<\/p>\n As a result the issuing bank, which has sent the pre-advice, must also send a MT 700 Issue of a Documentary Credit to inform the full terms and conditions of the documentary credit without delay.<\/p>\n On below table you can find explanations regarding the fields used under MT 705 swift messages.<\/p>\n You can also reach individual pages of each field by clicking the corresponding links.<\/p>\nMT 705 Pre-Advice of a Documentary Credit<\/h3><\/div>