DLC MT700 Issuance for Commodity Importers: Oil, Metals, Agricultural Goods and Raw Materials
DLC MT700 issuance for commodity importers buying oil, metals, agricultural goods or raw materials means getting a bank to issue a documentary letter of credit by SWIFT MT700, worded so the supplier accepts it and the documents fit the cargo.
Financely structures the credit, drafts the MT700 terms against your contract and places it with an issuing bank. We are an advisor and arranger, not a bank.
Read an MT700 for your commodity
MT700 ISSUE OF A DOCUMENTARY CREDIT illustrative
- :40A: Form of credit. Every UCP 600 credit is irrevocable. Transferable is added only if a trader will pass part of the credit to its supplier.
- :40E: Applicable rules. Brings in UCP 600. Add eUCP if documents will be presented electronically.
- :31D: Expiry date and place. Must leave time after the latest shipment date for documents to reach the bank.
- :32B: Currency and amount. The maximum the bank will pay, before any tolerance.
- :39A: Amount tolerance. Bulk cargoes rarely load the exact quantity, so a tolerance on amount should match the quantity tolerance.
- :41D: Available with, by. Sets where and how the credit is paid: sight payment, deferred payment, acceptance or negotiation.
- :42C: Drafts at. Sight for cash on presentation, or a usance tenor that gives the importer time to sell the cargo.
- :43P: Partial shipments. Allowed or not allowed. Split cargoes need it allowed.
- :44E: Port of loading. Must match the bill of lading exactly.
- :44F: Port of discharge. Your destination port.
- :44C: Latest shipment date. The last on-board date the bill of lading may show.
- :45A: Goods. Keep it short and identical to the contract. Long specifications in the LC create discrepancies.
- :46A: Documents required. The heart of the credit. Each document must be something the seller can actually produce.
- :47A: Additional conditions. Commodity-specific clauses such as quality settlement or third-party documents.
- :48: Presentation period. UCP 600 default is 21 calendar days. Shorter periods raise discrepancy risk.
- :49: Confirmation instructions. Whether the advising bank may or must add its confirmation for the seller.
What we deliver
- LC terms drafted from your sales contract and Incoterms, with document requirements suited to the commodity.
- Issuing bank placement with margin options, including credit enhancement where the bank wants more security.
- Sight, deferred or usance structures, including usance LCs with optional UPAS.
- Pre-issuance review of the supplier's comments and MT707 amendments, so the credit is accepted the first time.
Who it is for
Importers, distributors and traders buying physical cargoes whose suppliers require a bank-issued LC, from refined products and crude to copper, grains, sugar, fertilisers and ores. For general LC support on both sides of a trade, see our documentary letter of credit services. For funding the trade itself, see structured commodity finance.
Need an MT700 issued for your next cargo?
Send the contract, commodity, quantity, value, Incoterms and supplier details. We will set out the bank route, margin and costs.
Frequently asked questions
What is an MT700?
MT700 is the SWIFT message an issuing bank uses to issue a documentary letter of credit to the advising bank. It sets out the amount, expiry, shipment terms, goods description and documents required.
Can a commodity importer get an MT700 without 100% cash margin?
Sometimes. Banks may accept a trade line, partial margin, third-party collateral or credit enhancement, depending on the importer's financials, the commodity and the counterparties.
How long does MT700 issuance take?
Once KYC is complete and the bank has approved the credit, issuance can follow within days. Opening a new banking relationship and credit approval take longer than the SWIFT message itself.
Is Financely the issuing bank?
No. Financely is an advisor and arranger. We structure the LC and place it with issuing and confirming banks, which issue under their own approval.
The MT700 shown is illustrative and is not a template for any specific transaction. This page is for general information only and does not constitute legal, tax or investment advice. Financely is an advisory and arranging firm, not a bank, lender or broker-dealer. Any letter of credit is subject to the issuing bank's KYC, credit approval, documentation and fees.
