Swift Services Closing Process:

  • Step 1: Application Fill out and return the Swift Services Application with the documents for your deal. (Pro Forma Invoice, SPA, Contract, Agreement, etc.)
  • Step 2: Issuing of Draft A SWIFT MT799 draft of the Swift Letter will be created for you and your beneficiary to review and confirm.
  • Step 3: Draft Review and Opening Payment
  • a) Finalize the draft between you and your beneficiary and sign off on the draft (changes are free of cost).
  • b) We issue you a payment invoice for the Swift Letter, which you arrange to pay.
  • c) Once we receive your wire payment, we will release the finalized Swift Letter to the bank for issuance and delivery. When it comes to Standby Letters of Credit, at the request of an applicant, the issuing bank may send a Pre-Advice Letter of issuance and/or amendment of the particular letter of credit. A pre-advice is usually marked with a reference such as “full details to follow” Unless otherwise stated, the Pre-Advice Letter irrevocably commits the issuing bank to issue/amend the letter of credit as stated in the said Pre-Advice Letter.
  • Step 4: Issuance
  • More often than not, the bank will issue the Swift Letter within 48 hours of release. Once issued, a copy of the Swift Letter will be emailed to you as it is transmitted via SWIFT MT799, including the reference number of the Swift Letter. Your seller’s bank will be able to receive and confirm the Swift Letter transmission soon thereafter.

Bank Guarantees
A bank guarantee or BG is a pledge by a bank to make good on someone’s debt in the event that he or she cannot pay it. Bank guarantees are similar to the bank standing as a cosigner on a transaction; in the event that the original party cannot follow through, the bank can be called upon to provide the payment to complete the transaction. Many banks provide bank guarantees as a service to their clients for the purpose of facilitating large business transactions and deals.

Stand By Letter of Credit (SBLC)
A Standby Letter of Credit is very similar to a Bank Guarantee and are employed in similar situations. A Bank Guarantee or Banker’s Guarantee (BG) is a banking arrangement where a bank agrees to substitute its own credit in place of its client. Different from a traditional Line of Credit (which is intended to be paid) a Bank Guarantee is a contingent obligation. We say contingent meaning that it is dependent on the happening of an event, which may or may not actually ever occur. More often than not a BG is not paid because the event, project or deal does not happen, i.e. the deal never goes through or the project never gets off the ground.

Non-Recourse Debt or Non-Recourse Loan
A Non-Recourse Debt or Non-Recourse Loan is secured by a pledge of collateral, typically Bank Guarantee or Standby Letter of Credit, but for which the borrower is not personally liable. If the borrower defaults, the lender can liquidate or sell the collateral (Bank Guarantee or Standby Letter of Credit) but if the collateral sells for less than the debt, the lender cannot seek that deficiency balance from the borrower—its recovery is limited only to the value of the collateral. Our nonrecourse loan is typically limited to 65% to 85% loan-to-value ratios.

Performance Bonds
A performance bond, also known as a contract bond, is a surety bond issued by a financial service company or a bank to guarantee satisfactory completion of a project by a contractor. The term is also used to denote a collateral deposit of good faith money, intended to secure a futures contract, commonly known as margin. A job requiring a payment and performance bond will usually require a bid bond, to bid the job. When the job is awarded to the winning bid, a payment and performance bond will then be required as a security to the job completion.

Proof Of Funds
A Proof of Funds is a financial document and cash asset that proves a party has the capability and funds to complete their side of a transaction. This financial document is most often provided in the form of a bank, security, or custody document for a specific transaction. The Proof of Funds letter assists the selling or lending party with confidence there are cash funds available, that they are obtainable and legitimate.

RWA Letter
A Ready Willing and Able Letter (RWA Letter) is a bank instrument that verifies a bank or financial institution is Ready Willing and Able (RWA) to proceed on behalf of a client in any number of various financial transactions. An RWA Letter is usually sent from a buyer’s bank to the seller’s bank and is commonly sent together with a SWIFT MT-799.

SBLC or BG via SWIFT MT-760
SBLC stands for Standby Letter of Credit and is completely different from a Line of Credit or a Documentary Letter of Credit. An SBLC’s use and function is similar to a Bank Guarantee (BG). Due to regulations, US financial institutions are not able to offer many or any BG services so changing the legal wording of Letter of Credit became a crafty way to get around the laws. Consequently, Standby Letters of Credit began to be issued as a sort of legal loophole that continues to be used today. The code for an SBLC is SWIFT MT760.

Swift MT-760
The MT-760 is a type of SWIFT message that is often requested in import and export trading due to the fact that it functions in a similar manner to a Bank Guarantee, although it carries with it a significantly higher level of risk for the issuer (typically the buyer), and a reduced level of risk for the recipient or beneficiary (typically the seller). In laymen’s terms, an MT-760 is a SWIFT message, which guarantees that a bank will make payment in favor of a client of another bank.
Swift MT-799
Having a professional that knows what banks are willing to issue a SWIFT MT-799 and what requirement they have will save you a lot of time and heartache. An arrangement is made with the purchasers’ bank to have an MT-799 wired to the seller’s bank. Many banks are unwilling to issue MT-799′s, for there mere reason that doing so would make them liable for the full cost of the said transaction, leaving the bank liable for millions of dollars. A bank will not issue an MT-799 without collateral to secure their interests. Bank charges and fees vary but be prepared, this process is certainly not free.
Leased Bank Instruments
Depending on availability, the Bank Instrument/Collateral offered is in the form of Certificate of Debt and can be a BG ,MTN, Bond, Note, CD with delivery via Swift MT 760. Bank Instruments can also be delivered in the form of a Bank Guarantee or a Proof of Funds. Please contact us to inquire and learn more about our services.

Bank Instrument Monetization
Bank Instrument monetization is the process of liquidating bank instruments and converting them into legal tender. Harvest Finance can monetize most owned bank instruments to be used for a number of reasons ranging from project finance, private placement, or import/export among others. On average this can be accomplished in 10 days or less.