Seven-Step Procedure for Leasing SBLC
Step 1: Proof of Funds (POF)
- POF Transmission: Purchaser sends POF (e.g., MT799/MT199) to provider's bank.
- Verification: Demonstrates lessee's financial readiness.
- Details: Must include available cash or credit balance.
Step 2: Pre-Advice from Issuing Bank
- Notification: Issuing bank sends MT799 Pre-Advice.
- Validation: Confirms provider's legitimacy.
- Formality: Serves as intent to issue instrument.
Step 3: Verification of Pre-Advice
- Authentication: Receiving bank verifies MT799 Pre-Advice.
- Compliance: Ensures process integrity.
- Progress: Approval moves process forward.
Step 4: Bank Payment Undertaking (BPU)
- Commitment: Receiving bank sends MT799 BPU.
- Assurance: Confirms intent to pay fees.
- Preparation: Sets stage for MT760 issuance.
Step 5: Issuance of MT760
- Delivery: Issuing bank sends MT760 to receiving bank.
- Activation: Makes SBLC/BG valid.
- Authentication: Confirms instrument’s integrity.
Step 6: Final Verification
- Validation: Receiving bank authenticates MT760.
- Assurance: Confirms instrument’s genuineness.
- Completion: SBLC/BG becomes usable.
Step 7: Payment of Instrument Fee
- Timeline: Fee paid within five days.
- Settlement: Marks transaction finalization.
- Security: Secures SBLC/BG lease.