Article explaining the what is pre advice of MT760

1. What is a Pre Advice?
When there are large transactions between two banks are involved, the risks involved
are big too. So when one bank intends to send a large wire transfer to another bank,
they first send out a pre advice notice to the receiving bank. So a pre advice is a
message which one bank sends to another just to ensure that all important details
related to the wire transfer such as routing etc are correct and also to check if the
intended beneficiary maintains as account with the beneficiary’s bank or can
otherwise take funds from that bank. Such an advice notifies the recipient that the
buyer has opened a letter of credit of some amount for the beneficiary. The pre advice
can be revocable or irrevocable. The advising bank just notifies the beneficiary
without opening a advice of credit so that if the seller if wants to can proceed with the
processing of the buyers order.