Compare · Fast reference
MT700 vs MT760
See the structural difference first, then open the full lessons for exceptions and detailed procedure.
| Question | MT700 | MT760 |
|---|---|---|
| Main use | Issue a documentary credit | Issue a demand guarantee / standby letter of credit |
| Instrument family | Documentary credit | Demand guarantee or standby |
| Normal commercial role | Payment against complying documents | Independent undertaking supporting payment/performance or standby purpose |
| Typical core rules | Often UCP 600 | Often ISP98 for standby or URDG 758 for demand guarantee, depending on incorporation |
| Key warning | MT700 is a message, not the goods | MT760 does not mean every message is automatically an SBLC |
Remember thisA comparison simplifies the big picture. The actual undertaking, rules, wording, law and bank policy still control the real transaction.
How to use this comparison
The labels are a starting point, not a substitute for the actual wording. Before choosing a structure, ask what creates the payment obligation, who carries the credit risk, what rules apply, what event triggers payment and whether the receiving bank or financier accepts the structure.
1. Obligation
Who actually promises or is ordered to pay?
Who actually promises or is ordered to pay?
2. Trigger
What must happen before payment is due?
What must happen before payment is due?
3. Rules & documents
What wording or documentary conditions control the result?
What wording or documentary conditions control the result?
4. Bank acceptance
Will the relevant bank accept, advise, confirm, finance or process it?
Will the relevant bank accept, advise, confirm, finance or process it?