✅ How to Read a SWIFT MT700 – Field-by-Field Guide (For Non-Bankers)

A simple way to understand a Letter of Credit and avoid payment rejection.

A SWIFT MT700 is the official banking message used to issue a Letter of Credit (LC).
It defines the rules, amounts, dates, documents, and conditions that the seller must respect to receive payment.

If just one document is incorrect, the bank can legally refuse payment—even if the goods are perfect.
This guide explains each field in clear business language.


What MT700 Is Used For

  • The buyer’s bank guarantees payment

  • Payment is made only if documents comply

  • Every field protects the buyer and supplier

  • For the seller, reading MT700 correctly = guaranteed payment


Key MT700 Fields (Plain English Explanation)

SWIFT FieldMeaningWhat to Check
:40A – Form of CreditAlmost always “IRREVOCABLE”Never accept “REVOCABLE”
:20 – LC Reference NumberIdentification of the creditMust appear on all correspondence
:31C – Date of IssueLC becomes legally validCheck deadlines
:31D – Expiry Date & PlaceLast day + country for document presentationExpiry in seller’s country = easier
:50 – ApplicantBuyer / ImporterName must match contract
:59 – BeneficiarySeller / ExporterNo spelling errors
:32B – Currency & AmountMaximum LC valueMust match invoice/contract
:39A – ToleranceExample ±10% allowedImportant for bulk cargo/freight
:41A – Payment/Nego BankBank that pays or negotiates documentsEnsure this bank accepts your docs
:42C – Payment TermsAt sight or 30/60/90 days (usance)Impacts cash flow
:43P – Partial ShipmentsAllowed / Not AllowedIf NOT allowed = only one shipment
:44C – Latest Shipment DateFinal date cargo must leave portMiss it → payment refused
:44E / 44F – PortsLoading port / Discharge portMust match Bill of Lading
:45A – Goods DescriptionProduct, quantity, IncotermToo detailed = dangerous
:46A – Required DocumentsInvoice, BL, COO, Insurance, SGS, etc.Every word matters
:47A – Additional ConditionsExtra requirementsWatch out for “soft clauses”
:71B – ChargesOUR / SHA / BENOUR = you pay all bank fees
:49 – ConfirmationConfirmed / Without“Confirmed” = stronger protection

Example of a Simple Real MT700 (Plain English Version)

  • Irrevocable Letter of Credit

  • Amount: USD 100,000

  • Payment: At sight (immediate payment)

  • Partial Shipments: Allowed

  • Documents: Invoice, Original B/L, Certificate of Origin, Insurance 110% of CIF

  • Expiry: 21 days after shipment

✅ If documents match → payment is guaranteed


Most Common Risks & How to Avoid Them

❌ Wrong shipment dates
❌ Ports not matching the Bill of Lading
❌ Overly detailed product description
❌ No tolerance on bulk cargo
❌ “Subject to applicant approval” (dangerous soft clause)
❌ Expiry in buyer’s country, not seller’s
❌ Unknown who pays banking fees

Small detail = big financial risk.


10-Point Checklist Before Shipping

✔ Shipment date is realistic
✔ Partial shipments allowed (if needed)
✔ Tolerance (±10%) included
✔ Accurate ports of loading/discharge
✔ Required documents easy to produce
✔ Payment at sight or clear usance terms
✔ Bank of negotiation is acceptable
✔ Confirmation needed or not
✔ Expiry date in seller’s country
✔ No soft clauses

If something is incorrect → request an Amendment (MT707) before shipping.


Quick FAQ

Q: Does the bank check the goods?
No — banks check documents only, not the cargo.

Q: What happens if one document is wrong?
Payment can be refused.

Q: Can an MT700 be fixed after issue?
Yes — through an amendment.

Q: Does MT700 prove the buyer has money?
Yes — the buyer’s bank commits to pay if documents comply.


Final Takeaway

Reading a SWIFT MT700 correctly means:

✅ Zero risk of non-payment
✅ No disputes
✅ Faster logistics
✅ Total control of the LC process

A properly drafted MT700 transforms a Letter of Credit into a guaranteed payment, based only on documents—not negotiation, not trust, not promises.

Vianney NGOUNOU

About the Author With extensive experience in international finance, the author structures high-level funding solutions for governments, private corporations, public–private partnerships (PPP), and large-scale development projects across energy, infrastructure, real estate, education, healthcare, agriculture, and humanitarian sectors. Operating through a global network of top-tier banks, institutional partners, private capital groups, and regulated financial platforms, the author manages confidential and compliant strategies involving SBLC, BG, MTN, DLC, trade finance, structured finance, and monetization frameworks. All processes follow strict AML/KYC, due diligence, and international regulatory standards. The author’s mission is to simplify access to world-class financial knowledge and bring clarity to complex funding mechanisms, empowering governments, communities, and project owners to realize transformative initiatives that enhance education, healthcare, housing, clean energy, and economic development in emerging regions. Professional Engagement & Confidentiality All interactions are confidential, conducted with integrity, and aligned with international compliance protocols. No public fundraising, investments, or financial solicitations are offered. Each project is treated with discretion, professionalism, and strategic precision. Important Legal Disclaimer This content is strictly educational and informational. It does not constitute financial advice, investment solicitation, securities promotion, or an offer to participate in any financial product, instrument, or program. Any mention of SBLC, BG, MTN, PPP, monetization, structured finance, or trade finance is purely illustrative and intended to promote understanding of global financing mechanisms. All real transactions require independent legal, tax, and regulatory assessments by qualified professionals. The objective of these publications is to contribute to global development by promoting transparency, education, access to funding knowledge, and sustainable solutions for social welfare, healthcare, housing, and humanitarian progress. Contact For confidential professional inquiries: Email: info@nnrvtradepartners.com

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