Letter of Credit Transfer via MT720 – Empower Your Trade Chain with Controlledtitre ici
Flexibility Structured LC Transfers | MT720 SWIFT Format | Enable Downstream Suppliers with Confidence
⚠️ Need to Transfer Your LC Rights to a Supplier or Subcontractor?
A textile trader in Turkey received a $2M LC but needed to fulfill the contract using three smaller mills. With NNRV’s LC transfer via MT720, they transferred partial LC rights—each mill got paid directly, and the main exporter stayed in control.
🧠 “MT720 gave us the ability to fulfill large contracts with our partners. All compliant, all transparent.” – Selim A., Apparel Trade Manager
What is an LC Transfer via MT720?
The MT720 is the SWIFT message format used to transfer a Letter of Credit (LC) from the original beneficiary to one or more second beneficiaries, typically under a Transferable LC (MT700). This allows exporters to pass on LC rights—such as shipment and payment—to their suppliers, while retaining control over margin and compliance.
At NNRV, we structure and manage LC transfers via MT720 for global clients handling multi-tier trade operations, ensuring full UCP 600 compliance and secure execution.
🧠 “With MT720, we split a $5M LC across 4 factories in 3 countries—without compromising terms.” – Rajiv G., Industrial Components Buyer
Key Benefits of LC Transfer via MT720
✅ Supply Chain Flexibility – Empower subcontractors and manufacturers under one LC.
✅ Partial or Full Transfer – Choose exact amount, shipment, and document scope.
✅ Issuer Protection – First beneficiary remains in control of original terms.
✅ Global Recognition – MT720 transfers are standard under SWIFT and UCP 600.
✅ Faster Execution – No need to negotiate new LCs for each supplier.
How Does LC Transfer via MT720 Work?
Original LC Issued (MT700) – With “Transferable” clause to first beneficiary.
First Beneficiary Requests Transfer – Specifies amount, expiry, and partial rights.
Bank Sends MT720 – Transfers LC to one or more second beneficiaries.
Second Beneficiary Ships Goods – Presents documents under transferred terms.
Payment Made via Issuing Bank – Routed through advising and confirming banks.
📂 Documents Required for LC Transfer via MT720
To initiate and structure an MT720 LC transfer, we require the following:
📌 Original Transferable LC (MT700) – With explicit transfer permission.
📌 Transfer Instruction Letter – Detailing what will be passed on (amount, shipment).
📌 First Beneficiary KYC & Mandate – Confirmation of authority to initiate transfer.
📌 Second Beneficiary Information – Legal documents, compliance forms, SWIFT details.
📌 Trade Structure Summary – Flow of goods and invoice relationships.
🏦 Approved Banks for LC Transfer via MT720
NNRV works with leading institutions that support efficient, secure MT720 transfer operations:
| Bank Name | SWIFT Code | Advantages | Disadvantages | Transfer Fees | Transfer Time | Min. Transaction | MT Types |
|---|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | Seamless MT720 capability, top-tier support | Higher compliance thresholds | 0.5–1% | 1–4 days | $1M | MT700, MT720 |
| BNP Paribas HK | BNPAHKHHXXX | Excellent EU–Asia transfer handling | KYC-intensive process | 0.4–0.8% | 2–5 days | $1M | MT700, MT720 |
| Credit Foncier GmbH | CFEGDE82 | Legal clarity for structured transfers | Slower response on amendments | 0.6–1% | 2–6 days | $500K | MT700, MT720 |
| Standard Commerce USA | STDMDMDMXXX | Precise MT720 flow for US transactions | Requires strict document control | 0.6–1% | 2–6 days | $500K | MT700, MT720 |
| ABC Bank Mauritius | ABCKMUMU | Practical for SME supplier transfers | Limited for high-volume deals | 0.4–0.7% | 2–5 days | $250K | MT700, MT720 |
(📩 Other SWIFT-enabled banks can be proposed based on jurisdiction and flow.)
🎯 Why Use LC Transfer via MT720?
| 🔒 Feature | ✅ Benefit |
| Structured Transfer Rights | Assign part or all of the LC as needed |
| Secure SWIFT MT720 Messaging | Bank-to-bank compliance and recordkeeping |
| First Beneficiary Control | Maintain command over commercial margin |
| Ideal for Export Aggregators | Use one LC across multiple suppliers |
| Reduces Transaction Duplication | No need to create separate LCs |
🛠️ Our 5-Step Process
Review the original MT700 LC structure
Define transfer scope and beneficiaries
Prepare MT720 draft and compliance file
Coordinate with issuing and advising banks
Execute SWIFT MT720 and monitor fulfillment
🔍 MT720 LC Transfer vs Other LC Tools
| Instrument | Trigger | Best Use Case | First Beneficiary Control |
| MT720 Transfer | Transferable LC | Subcontracting or bulk fulfillment | 🔒🔒🔒🔒 |
| Transferable LC | Original issuance | Buyer-to-seller flexibility | 🔒🔒🔒 |
| Back-to-Back LC | Separate issuance | Complex multi-party transactions | 🔒🔒🔒🔒🔒 |
| Red Clause LC | Pre-shipment | Advance funds before shipment | 🔒🔒 |
Why Choose NNRV Trade Partners for MT720 LC Transfer?
🔒 MT720 Structuring & Execution Specialists
✅ Compliance Drafting for Multi-Tier Deals
📄 Documentation Check for First and Second Beneficiaries
🌍 40+ SWIFT Bank Network
📁 Legal & Trade Strategy Support Included
💲 Important Notes on Fees
Transfer costs depend on:
• Number of second beneficiaries
• Volume and complexity of LC
• Issuing and advising banks involved
🔹 Speak with our experts for a customized quotation.
🧠 Real Testimonials
“We handle 10+ factories across Asia. MT720 was the cleanest solution.”
– Alina M., Electronics Assembly Exporter – Malaysia
“Without MT720, our timeline would’ve broken. Thanks to NNRV, we delivered flawlessly.”
– Nicolas T., Agricultural Export Hub – Senegal
📚 What Makes Us Different?
✔️ MT700 + MT720 Structuring Expertise
✔️ Multibeneficiary Coordination
✔️ Legal + Financial Control Mechanisms
✔️ End-to-End Trade Flow Mapping
📌 From $500K to $50M+ in transferred LC operations
❓ Top 5 FAQ – Answered by Experts
Can I transfer only part of an LC? Yes. You can specify the amount, expiry, and partial shipment terms.
Can I keep the difference in price? Yes. The first beneficiary can substitute the invoice and retain their margin.
What if one supplier fails? Each transfer can be managed independently to ensure fallback plans.
Is this allowed under UCP 600? Yes. Transferable LCs and MT720 are fully compliant.
Can multiple beneficiaries receive MT720s? Yes. NNRV can coordinate multi-party LC splits.
🔗 Related Services
• Transferable LC
• Back-to-Back LC
• Supplier Aggregation Structuring
• Trade Margin Protection Advisory
📖 Strategic Blog Posts
• How MT720 Simplifies Complex Export Chains
• LC Transfers vs Back-to-Back LC: Which to Use?
• Structuring Tiered Trade Execution Under One LC
🚀 Structure Your LC Transfer via MT720 Now!
Simplify multi-tier trade, control payment flows, and empower your suppliers. Let NNRV handle your LC transfer with security and speed.
📩 Book a Supply Chain LC Strategy Call
☎️ Talk to a Structuring Expert | 🌍 100% SWIFT MT720 | ✅ UCP 600 Aligned