Banks are not in favour of issuing these automated messages (MT 799), because they fear whether these automated messages are liable for the cost of the trade or not. There is usually a requirement for the bank’s client to post a specific level of collateral.
It is mandatory for a funder to need to know the name of the advising bank. However, they will be in need of more granular detail for example the LC Number and LC Amount. This will also include the tenor or length of the draft. This goes alongside with the latest date of shipment. The company that is liable for the confirmation fee needs to be known by the funder and everything should be transparent; the transparency also includes all the information on what products are being traded, location, port, unloading location and whether the LC is restricted for negotiation or not.
Here we provide you the most common information needed to send a MT799:
There is one hidden truth about the banks that they do not accept to have an MT700 POF issued to the seller’s bank whenever their clients approach them. Some banks directly deny issuing MT799 because the bank is burdened by the cost of the trade if they issue the seller an MT799 message and the rate sometimes exceeds up to millions. In order to secure their own interests, they do not simply issue an Mt799, they require some collateral for that. MT799 is also used as a key which convinces the supplier that the seller actually has funds on deposit.
Banks can make an arrangement of MT799 proof of funds for their clients without any upfront fee payment until POF is not issued and confirmed by the receiving bank. The bank does it on a fixed- return basis to facilitate various funding requirements, which also provides you the capability to meet on-going project needs. The investment process is not really a lengthy one yet is simple and secure and can be completed in as little as five (5) banking days.
They can arrange funding various types of accounts for a broad range of requirements. All accounts are verified via written verification of deposit, with other confirmation options available that includes verbal and electronic verification. Special accounts are also available that provides confirmations using MT999, MT799, and MT760 message formats. The rate of return requirements varies, depending on the volume of funds provided and the verification type needed.