(POF) (RWA) (BCL) (Pre-Advice)
WHAT IS A READY WILLING AND ABLE LETTER? (RWA)
A Ready Willing and Able Letter (RWA) is a document issued by a bank or financial institution for their clients.
It demonstrates the intent and capability of the clients to enter into a financial business transaction both legally and financially.
After being issued, the Ready Willing and Able Letter (RWA) is sent to the beneficiary via MT799 SWIFT message.
WHAT IS A PROOF OF FUNDS LETTER? (POF)
A Proof of Funds Letter (POF) is a document that assists the seller in knowing that the buyer has cash funds available.
It shows that these funds are not only legitimate but also obtainable.
A Proof of Funds Letter (POF) is often required at the beginning of negotiations between parties who haven't worked together in the past.
The POF not only shows that the buyer has cash in the bank but also can help show the seller how serious the buyer is in doing a deal.
After issued, the Proof of Funds (POF) Letter is sent to the beneficiary via MT799 SWIFT message.
WHAT IS A BANK COMFORT LETTER? (BCL)
A Bank Comfort Letter (BCL) or as it is sometimes referred to, a Bank Confirmation Letter is a letter from a bank or financial institution confirming the intent and capability of the clients to enter into a financial business transaction both legally and financially.
The Bank Comfort Letter officially vouches for the fact that the borrower (an individual, company or organization) is eligible to borrow a specified amount of funds for a specified purpose.
WHAT IS A PRE-ADVICE LETTER? (PRE-ADVICE)
When it comes to 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.
HOW DOES THE SWIFT SERVICES CLOSING PROCESS WORK?
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.
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.