Unconfirmed Letters of Credit (MT700)
Lower-cost LCs without added confirmation from a second bank — best when the issuing bank is highly trusted and corridor risk is moderate. UCP 600 compliant, SWIFT-traceable, and document-driven.
ICC / UCP 600 • ISBP 745
SWIFT MT700 / MT707
KYC/AML & Sanctions Screening
Global Desks • 100+ Countries
1–6%
Typical Issuance Fee*
1–6 days
Usual Issuance Window
$500K–$1M
Common Min Deal Size
200+
Institutional Links
🔄 How Does an Unconfirmed LC Work?
- Buyer Requests LC Issuance — without a confirmation clause.
- Issuing Bank Sends MT700 — to the beneficiary’s advising bank.
- Seller Ships & Presents Documents — to the advising bank per LC terms.
- Documents Verified & Forwarded — issuing bank checks compliance.
- Payment by Issuing Bank — no second-bank guarantee involved.
Good fit: strong issuing bank, stable corridor, clear contract. Add confirmation if country or bank risk increases.
🧾 Required Documents for Unconfirmed LC
Trade Pack
- Signed Sales Agreement (unconfirmed LC payment)
- Commercial Invoice, PI, packing list
- Incoterms, shipment plan, transport mode
Corporate & KYC
- Business registration (license/incorporation)
- Buyer & seller KYC (UBO chart, IDs)
- Financials (optional by size/corridor)
Banking Details
- SWIFT-enabled accounts (IBAN/BIC)
- Draft LC (MT700) with field alignment
- Advising bank coordinates
🧭 Decision Matrix — Unconfirmed vs Confirmed
| Instrument | Trigger | Best Use Case | Seller Protection | Cost |
|---|---|---|---|---|
| Unconfirmed LC | Issuer-only obligation | Trusted issuer & corridor | 🔒🔒🔒 | Lower (1–6%) |
| Confirmed LC | Issuer + confirming bank | Higher-risk jurisdictions | 🔒🔒🔒🔒🔒 | Higher |
| Irrevocable LC | Document compliance | Global trade standard | 🔒🔒🔒🔒🔒 | Mid |
| SBLC (MT760) | Buyer default | Payment assurance backup | 🔒🔒🔒🔒 | Mid–High |
We can convert or amend to a confirmed LC later (MT707) if conditions change.
🌐 Approved Issuing Banks for Unconfirmed LC (MT700) — 50+ Illustrative Institutions
Panel selection depends on corridor, deal size, tenor, and compliance. Fees & timelines are indicative and subject to final approvals.
| Bank Name | SWIFT | Advantages | Fees* | Issuance Time* | Min. | Region |
|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | Top-tier, global acceptance | 1–6% | 1–5d | $1M | Asia |
| BNP Paribas (HK) | BNPAHKHHXXX | EU–Africa–Asia lanes | 1–6% | 2–6d | $1M | Asia/EU |
| Bank of China (HK) | BKCHHKHHXXX | Asia trade corridors | 1–6% | 2–6d | $1M | Asia |
| Credit Foncier GmbH | CFEGDE82 | EU structuring rigor | 1–6% | 2–7d | $500K | EU |
| Standard Commerce Bank (USA) | STDMDMDMXXX | USD corridors | 1–6% | 2–6d | $500K | US |
| J.P. Morgan (NY) | CHASUS33 | Global reach | 1–6% | 1–4d | $1M | Global |
| Citibank | CITIUS33 | Strong correspondent net | 1–6% | 2–6d | $1M | Global |
| Bank of America | BOFAUS3N | USD settlement | 1–6% | 2–6d | $1M | US |
| Wells Fargo Bank | On Request | Trade ops | 1–6% | 2–6d | $1M | US |
| Deutsche Bank (Frankfurt) | DEUTDEFF | EU hub | 1–6% | 2–6d | $1M | EU |
| Commerzbank (Frankfurt) | COBADEFF | Reimbursement strength | 1–6% | 2–5d | $500K | EU |
| Société Générale | SOGEFRPP | EU/Africa | 1–6% | 2–6d | $1M | EU |
| Crédit Agricole CIB | AGRIFRPP | Structured DCs | 1–6% | 2–6d | $1M | EU |
| Barclays (UK) | BARCGB22 | UK trade | 1–6% | 2–5d | $500K | UK |
| NatWest (UK) | NWBKGB2L | Domestic/intl mix | 1–6% | 2–6d | $500K | UK |
| UBS | On Request | CHF/EUR corridors | 1–6% | 2–6d | $1M | CH/EU |
| MUFG (Japan) | BOTKJPJT | Japan/APAC | 1–6% | 2–6d | $1M | APAC |
| Mizuho (Japan) | MHBKJPJT | APAC corridors | 1–6% | 2–6d | $1M | APAC |
| SMBC (Japan) | SMBCJPJT | Commodity lanes | 1–6% | 2–6d | $1M | APAC |
| DBS (Singapore) | DBSSSGSG | SEA expertise | 1–6% | 2–5d | $1M | APAC |
| UOB (Singapore) | UOVBSGSG | Efficient ops | 1–6% | 2–5d | $1M | APAC |
| OCBC (Singapore) | OCBCSGSG | APAC trade | 1–6% | 2–5d | $1M | APAC |
| Maybank (Malaysia) | MBBEMYKX | ASEAN reach | 1–6% | 2–6d | $500K | APAC |
| ANZ | ANZBAU3M | AU/NZ corridors | 1–6% | 2–6d | $500K | Oceania |
| Westpac | WPACAU2S | Oceania trade | 1–6% | 2–6d | $500K | Oceania |
| Standard Chartered (Dubai) | SCBLAEAD | Cross-border hub | 1–6% | 2–6d | $500K | MENA |
| First Abu Dhabi Bank | NBADAEAA | Project LCs | 1–6% | 2–6d | $1M | MENA |
| Emirates NBD | EBILAEAD | GCC trade | 1–6% | 2–6d | $500K | MENA |
| QNB (Qatar) | QNBAQAQA | GCC strength | 1–6% | 2–6d | $1M | MENA |
| National Bank of Egypt | NBEGEGCX | North Africa | 1–6% | 3–7d | $250K | Africa |
| Standard Bank (South Africa) | SBZAZAJJ | Africa supply chains | 1–6% | 3–7d | $250K | Africa |
| Absa (South Africa) | ABSAZAJJ | Regional reach | 1–6% | 3–7d | $250K | Africa |
| Nedbank (South Africa) | NEDSZAJJ | Trade corridors | 1–6% | 3–7d | $250K | Africa |
| MCB (Mauritius) | MCBLMUMU | Indian Ocean hub | 1–6% | 2–6d | $250K | Africa |
| ABC Banking (Mauritius) | ABCKMUMU | SME-friendly | 1–6% | 2–5d | $250K | Africa |
| RBC (Canada) | ROYCCAT2 | CAD/USD corridors | 1–6% | 2–6d | $500K | NA |
| TD (Canada) | TDOMCATTTOR | North America | 1–6% | 2–6d | $500K | NA |
| Scotiabank (Canada) | NOSCCATT | Americas coverage | 1–6% | 2–6d | $500K | NA/LatAm |
| BMO (Canada) | BOFMCAM2 | USD/CAD LCs | 1–6% | 2–6d | $500K | NA |
| Santander (Spain/LatAm) | BSCHESMM | EU ↔ LatAm | 1–6% | 2–6d | $500K | EU/LatAm |
| BBVA (Spain) | BBVAESMM | Spain/LatAm corridors | 1–6% | 2–6d | $500K | EU/LatAm |
| Itaú Unibanco (BR) | ITAUBRSP | Brazil trade | 1–6% | 3–7d | $500K | LatAm |
| Banco do Brasil | BRASBRRJ | Public/private mix | 1–6% | 3–7d | $500K | LatAm |
| Banorte (MX) | BNMXMXMM | MX corridors | 1–6% | 2–6d | $300K | LatAm |
| State Bank of India | SBININBB | India trade | 1–6% | 2–6d | $250K | India |
| ICICI Bank | ICICINBB | Private corridors | 1–6% | 2–6d | $250K | India |
| HDFC Bank | HDFCINBB | SME-friendly | 1–6% | 2–6d | $250K | India |
| Habib Bank (PK) | HABBPKKA | South Asia | 1–6% | 3–7d | $250K | SA |
| PG Asia Investment Bank | AINEMY22 | Flexible intake | 1–6% | 2–6d | $250K | APAC |
| Dushanbe City Bank | LCMDTJ22 | Frontier access | 1–6% | 3–7d | $250K | CA |
| Asia Pacific Investment Bank | ASPMMYKL | Recurring trade | 1–6% | 2–5d | $300K | APAC |
| Digital Commercial Bank | On Request | Digital onboarding | 1–6% | 1–4d | $300K | US |
| Sapelle Intl Bank Liberia | GNERLRLM | Frontier support | 1–6% | 3–7d | $250K | Africa |
| Unibanque (UK) | UNBQGB22 | SME corridors | 1–6% | 2–6d | $500K | UK |
| Al-Amanah Islamic Inv. Bank | AIIPPHM1XXX | Sharia-compliant | 1–6% | 2–6d | $250K | PH |
| Point Bank (UK) | POITGB21 | Agile setup | 1–6% | 2–5d | $300K | UK |
| ACE Investment Bank (MY) | AIBMMYKL | Rapid LC | 1–6% | 2–5d | $250K | APAC |
| Tabarak Investment Capital | TIBIAEADXXX | UAE structured | 1–6% | 2–5d | $250K | UAE |
| United Bank for Investment (IQ) | UNTVIQBAXXX | Regional deals | 1–6% | 3–7d | $250K | MENA |
| Golden Touch Investment Bank | GTIVMT2LXXX | Custom clauses | 1–6% | 2–6d | $250K | Offshore |
*Most unconfirmed LC deals land between 1–6%, varying by risk, corridor, tenor, and documentation.
🛡️ Risk Controls & Compliance
Issuer Risk (No Confirmation)
- Choose strong, internationally recognized issuers
- Consider adding confirmation if risk escalates
- Use reimbursement arrangements for faster payout
Document Certainty
- Pre-vet drafts against UCP 600 & ISBP 745
- Align transport & insurance terms early
- Practice presentations to reduce discrepancies
Sample LC Snippet
“This Documentary Credit is issued as Unconfirmed. Advising bank is authorized to forward compliant documents for examination and payment by the Issuing Bank only.”
💵 Indicative Pricing
| Item | Range | Notes |
|---|---|---|
| LC Issuance (Unconfirmed) | 1% – 6% | By issuer, tenor, corridor |
| Amendments (MT707) | $250 – $1,500 | Per change; complexity-dependent |
| Document Checking | $150 – $750 | Per presentation |
| Advising/Transmission | $150 – $600 | Receiving bank fees |
We quote transparently before proceeding. No engagement if compliance risks are present.
💬 Client Reviews (10)
Baltic Steel★★★★★
Issuer was top-tier; unconfirmed saved us fees without adding risk.
MENA Foods★★★★★
Clean LC wording; first presentation paid without a single query.
EuroTextiles★★★★★
Draft alignment under UCP 600 was flawless. Fast payout.
GCC EPC★★★★★
We added confirmation later via amendment—NNRV guided perfectly.
SA Mining★★★★★
Reimbursement route accelerated value date. Great structuring.
APAC Components★★★★☆
One amendment for dates; otherwise very smooth.
Helios Infra★★★★★
Unconfirmed LC worked due to A-rated issuer. Excellent advice.
LatAm Retail★★★★★
Transparent fees and timeline. We’ll repeat.
Iberia Energy★★★★★
Tight wording avoided all discrepancies. Paid at sight.
Pacific Commodities★★★★★
Perfect match of issuer to corridor. Confidence from day one.
❓ Frequently Asked Questions (15)
1) When is an unconfirmed LC appropriate?
When the issuing bank is highly trusted and political/country risk is moderate to low.
2) Can we add confirmation later?
Yes, via amendment (MT707) if counterparties agree and a confirming bank is available.
3) Are fees lower than confirmed LCs?
Typically yes, because you avoid the confirming bank’s charges. Our range is 1–6% depending on risk.
4) What rules govern unconfirmed LCs?
UCP 600 and ISBP 745 for document examination standards.
5) Does the advising bank pay?
Not obligated. The issuing bank examines and pays on compliance.
6) What are common discrepancies?
Late shipment, missing signatures, insurance/transport conflicts, or wrong LC references.
7) Can the LC be transferable?
Yes, if expressly allowed in the LC terms.
8) Can we use reimbursement banks?
Yes; a reimbursement arrangement may speed settlement even without confirmation.
9) What if the issuer delays?
We escalate through bank channels and can pursue amendments or add confirmation if needed.
10) Does unconfirmed equal unsecured?
No. It’s still a bank’s irrevocable commitment — just not guaranteed by a second bank.
11) How fast is issuance?
Usually 1–6 business days once documents and wording are aligned.
12) Do you support partial shipments?
Yes, provided the LC wording (e.g., Field 43P) allows and documents match each draw.
13) Can we discount post-shipment documents?
Often yes, at the advising or another bank, depending on risk and compliance.
14) Is ESG/impact prioritization possible?
In some corridors, yes — lenders may prefer certified sustainable flows.
15) What if our bank lacks SWIFT?
We can arrange advising/correspondent routes to ensure proper delivery.
📮 Request an Unconfirmed LC (MT700)
This page is informational and non-binding. Final terms depend on issuer approvals and compliance outcomes.