Unconfirmed Letter of Credit (MT700) – Flexible Payment Assurance Without Double Guarantee
Secure Yet Cost-Efficient | No Confirmation Bank Required | SWIFT MT700 Delivery
⚠️ Do You Need Payment Security Without Additional Bank Fees?
A South African SME received an LC from a reputable buyer’s bank but didn’t want to pay for confirmation. With NNRV’s Unconfirmed LC setup, they shipped with confidence and received $750K in full—on time and without the extra costs.
🧠 “We didn’t need confirmation. NNRV helped us understand the risk and proceed smartly.” – Lerato M., Electronics Exporter
What is an Unconfirmed Letter of Credit (LC)?
An Unconfirmed LC is a documentary credit issued by the buyer’s bank (issuing bank), without the payment being guaranteed by a second bank (confirming bank). The beneficiary relies solely on the commitment of the issuing bank.
At NNRV Trade Partners, we help clients assess whether an unconfirmed LC fits their risk appetite. We issue Unconfirmed LCs via SWIFT MT700 through top-tier global banks, ensuring UCP 600 compliance and a clear framework for exporters.
🧠 “When the buyer’s bank was strong, NNRV advised us to skip confirmation. We saved time and money.” – Idriss K., Plastics Manufacturer
Key Benefits of Unconfirmed LC
✅ Cost-Effective – No confirmation fees or additional bank charges.
✅ Global Legitimacy – Still valid and enforceable under UCP 600.
✅ Direct Issuer Responsibility – Payment comes from the buyer’s bank.
✅ Simplified Process – Fewer intermediaries involved.
✅ Ideal for Trusted Bank Transactions – When issuer bank has solid reputation.
How Does an Unconfirmed Letter of Credit Work?
Buyer Requests LC Issuance – Without confirmation clause.
Issuing Bank Sends LC via SWIFT MT700 – To the beneficiary’s bank.
Seller Ships Goods & Presents Documents – Directly to the advising bank.
Documents Verified & Forwarded – Issuer reviews compliance.
Payment Made by Issuing Bank – No secondary bank involved.
📂 Documents Required for Unconfirmed LC Issuance
Before issuing an Unconfirmed LC, we assess all variables and request standard documentation:
📌 Signed Sales Agreement – Outlining payment via unconfirmed LC.
📌 Commercial Invoice – Detailing value, Incoterms, and buyer.
📌 Business Registration Docs – Company license, incorporation.
📌 Financial History – Optional based on transaction size.
📌 Buyer Details – KYC of applicant, delivery terms.
📌 Shipping Instructions – Agreed port, transport mode, and timing.
🏦 Approved Issuing Banks for Unconfirmed LC (MT700)
While confirmation is not added, only trusted and globally respected banks are accepted as issuing institutions.
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | LC Types |
|---|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | Top global trust, ideal for unconfirmed LC | Higher scrutiny for SMEs | 0.5–1% | 1–5 days | $1M | Sight, Unconfirmed |
| BNP Paribas HK | BNPAHKHHXXX | Reputable across Europe and Africa | Limited SME support | 0.5–0.8% | 2–6 days | $1M | Unconfirmed, Transferable |
| Bank of China HK | BKCHHKHHXXX | Widely accepted in Asia | Documentation process strict | 0.5–0.9% | 2–6 days | $1M | Unconfirmed, Usance |
| Credit Foncier GmbH | CFEGDE82 | EU legal structure, reliable for exporters | Less flexible on new clients | 0.6–1% | 2–7 days | $500K | Unconfirmed, Confirmed |
| Standard Commerce USA | STDMDMDMXXX | Strong for USD trades, excellent compliance | May require extended due diligence | 0.6–1% | 2–6 days | $500K | Unconfirmed, Confirmed |
(📩 Ask us for a tailored match based on your project and destination.)
🎯 Why Use an Unconfirmed LC?
| 🔒 Feature | ✅ Benefit |
| Lower Cost | No second bank confirmation fees |
| Simplified Process | Less coordination required |
| Legal Guarantee from Issuer | Still enforceable under UCP 600 |
| Efficient for Trusted Banks | Rely on known institutions |
| Optional Confirmation | Can be added if risk increases |
🛠️ Our 5-Step Process
You submit trade & company documents
NNRV structures an LC with or without confirmation
You approve the terms & pay issuance fee
Bank issues SWIFT MT700 LC
Seller ships & receives payment from issuing bank
🔍 Unconfirmed LC vs Other Instruments
| Instrument | Trigger | Best Use Case | Seller Protection |
| Unconfirmed LC | Issuer bank only | Trusted bank relationships | 🔒🔒🔒 |
| Confirmed LC | Dual bank guarantee | High-risk jurisdictions | 🔒🔒🔒🔒🔒 |
| Irrevocable LC | Document compliance | Global trade standard | 🔒🔒🔒🔒🔒 |
| SBLC | Buyer default | Payment assurance backup | 🔒🔒 |
Why Choose NNRV Trade Partners for Unconfirmed LC Structuring?
🔒 Top Bank Access – Only trusted issuer banks used
📄 Transparent Risk Advisory – Understand pros and cons
✅ Customized LC Design – Adapted to your specific trade needs
🌍 Wide Global LC Experience – 40+ countries served
📁 Full Documentation Guidance – From KYC to shipping terms
💲 Notes on Fees
Unconfirmed LC fees vary by:
• Issuer reputation
• Transaction size
• Risk profile and country of operation
🔹 Request a pre-diagnostic to assess your eligibility and cost.
🧠 Real Testimonials
“We chose unconfirmed LC to cut fees. NNRV made sure the bank was solid.”
– Oluchi N., Agroexporter – Nigeria
“Zero issues. We got paid directly from the buyer’s bank with no need for confirmation.”
– Samir T., Packaging Solutions – India
📚 What Makes Us Different?
✔️ Education Before Execution
✔️ Bank Vetting Support
✔️ Flexible Structuring Options
✔️ Smart Cost Reduction Tactics
✔️ Clear Draft Reviews & Advice
📌 From $250K to $20M+ unconfirmed LC deals managed securely
❓ Top 5 FAQ – Answered by Experts
Is an Unconfirmed LC safe? Yes, if the issuing bank is reputable. We only work with strong institutions.
Can I add confirmation later? Sometimes. You can request it depending on LC clause and advising bank.
What are the risks? Mainly linked to issuer reliability. We assess that with you.
Is it faster than Confirmed LC? Yes. Fewer parties involved means quicker issuance.
Is this accepted under UCP 600? Yes. It’s a valid and enforceable LC type under global standards.
🔗 Related Services
• Confirmed LC
• Irrevocable LC
• Bank Vetting Reports
• Export Readiness Check
• SWIFT MT700 Structuring
📖 Strategic Blog Posts
• When to Use an Unconfirmed LC
• Cutting LC Costs Without Sacrificing Security
• SWIFT MT700 Essentials for Exporters
🚀 Get Your Unconfirmed LC Issued Now!
Leverage trusted bank relationships without the extra fees. NNRV structures LCs for efficiency and safety.
📩 Book Your LC Strategy Session
☎️ Talk to Our LC Experts | 🌍 100+ Deals Issued | ✅ SWIFT MT700 Global Delivery