Trade Finance Encyclopedia

​In partnership with Star Alliance Consulting S.L, we facilitate a comprehensive suite of financial instruments designed to protect both buyer and seller interests across global borders.

​Core Financial Instruments

​SBLC (Standby Letter of Credit): A bank’s promise to pay via MT760 if the buyer fails to perform.

​BG (Bank Guarantee): A bank commitment covering losses if contractual obligations are not met via MT760.

​LC (Letter of Credit): A payment mechanism where the bank pays the seller against compliant shipping documents via MT700.

​APG (Advance Payment Guarantee): Protects the buyer’s initial advance payment to the seller.

​PG (Performance Guarantee): Ensures the seller or contractor fulfills all contractual duties.

​Verification & Compliance Documents

​POF (Proof of Funds): Official bank confirmation showing available funds for the transaction.

​RWA (Ready, Willing and Able): A formal declaration confirming the buyer is prepared to proceed.

​BCL (Bank Comfort Letter): A statement from the bank confirming a client’s financial standing.

​BOF (Block of Funds): Funds are temporarily blocked in an account to demonstrate financial capacity.

​Standardized SWIFT Communication

​MT700: Used for the issuance of a Documentary Letter of Credit.

​MT760: Used for the issuance of SBLCs, BGs, or other Guarantees.

​MT799: Used for pre-advice or bank-to-bank communication before formal issuance.

​MT998: A free-format message often used for POF, RWA, and BCL confirmations.

Exclusive Star Alliance Consulting Services

​Facilitated via secured and unsecured facilities in partnership with Olaadex Energies Ltd:

​Sight & Usance Letters of Credit

​Stand-by Letters of Credit (SBLC)

​Bank, Performance, and Demand Guarantees

​Official SWIFT Messages: POF, BOF, RWA, and Pre-advice