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What is a confirmed letter of credit?
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Mar 20, 2023 · The term confirmed letter of credit refers to an additional guarantee to an original letter of credit obtained by a borrower from a second bank. It guarantees that...
- Julia Kagan
May 24, 2024 · A confirmed letter of credit involves a bank other than the issuing bank guaranteeing the letter of credit. The second bank is the confirming bank, typically the seller’s...
- Julia Kagan
Jun 11, 2022 · A confirmed letter of credit is a letter of credit in which the seller or exporter has a payment guarantee from a second bank or a confirming bank, i.e., in case the first bank fails to pay, then the payment will be made by the second bank.
Mar 15, 2024 · Obtaining a confirmed letter of credit involves a comprehensive credit application process, similar to applying for a loan. Buyers must provide detailed documentation and information to their banks to demonstrate their creditworthiness and financial capability.
May 25, 2024 · Confirmed letters of credit are commonly used as negotiable instruments, which are signed documents that promise to pay a certain sum to a specified person. They can be especially valuable in international business transactions that involve a significant payment amount for goods or services.
Aug 6, 2024 · A confirmed letter of credit (LC) is a crucial financial instrument designed to ensure transaction security between global trading partners in international trade.
Jan 18, 2021 · A confirmed letter of credit gives the seller or exporter a payment assurance from a second bank, often known as a confirming bank. If the first bank is unable to pay, the second bank is expected to complete the payment.