How to Get a Confirmed Documentary LC Your Supplier Will Accept
Some suppliers will not ship unless the LC is confirmed by a bank they trust. That means a second bank adds its promise to pay on top of the issuer. If documents comply, they pay. No excuses. Here is the clean route to a confirmed LC that passes credit and gets your seller moving.
Outcome:
a UCP 600 LC issued by your bank and confirmed by a bank acceptable to the seller, with simple wording, fast reimbursement, and a presentation process that pays at first pass.
When You Need Confirmation
Issuer or country risk
Supplier doubts the issuing bank or its country. A confirmer removes that risk for the seller.
Cash at sight requirement
Seller demands payment at sight with no waiting for reimbursement across borders.
Shipment on tight dates
A confirming bank that can pre check documents speeds payout and clears logistics.
Supplier policy
Some corporates only ship under confirmed LCs. No debate. Bring a confirmer they accept.
Who Does What
| Party |
Role under a confirmed LC |
| Issuing Bank |
Issues MT700 under UCP 600. Reimburses the confirmer after payment. |
| Advising Bank |
Authenticates and routes the LC to the seller. May also be the confirmer. |
| Confirming Bank |
Adds its independent payment promise and pays against compliant presentation. |
| Nominated Bank |
Where documents are presented and payment is made. Often the confirmer. |
| Applicant and Beneficiary |
Buyer applies. Seller ships and presents documents to get paid. |
How To Secure a Confirmed LC Step by Step
| Stage |
What happens |
Tips that save time |
| 1) Intake |
Collect SPA or PO, shipment plan, seller bank details, issuer acceptability list, and whether confirmation is required or silent. |
Get the seller to approve confirmer names by email before you issue. |
| 2) Draft wording |
UCP 600 text, availability by payment or negotiation, nominated bank, reimbursement, and fee split stated in the LC. |
Keep document list short and aligned to ISBP 745. |
| 3) Confirmation add |
Issuing bank requests a named bank to add confirmation at issuance or after advice. Pricing and risk set by the confirmer. |
If time is tight, use a bank that can confirm and negotiate in the seller’s country. |
| 4) Ship and present |
Seller ships, prepares documents, and presents to the nominated or confirming bank for payment. |
Ask the confirmer for a pre-check before shipment to cut discrepancies. |
| 5) Payment and reimbursement |
Confirmer pays the seller, then claims reimbursement from the issuing bank per LC terms. |
Use tested reimbursement routes to avoid delays. |
LC Wording That Gets Paid First Time
Rules and availability
Subject to UCP 600. State if available by payment, acceptance, or negotiation. Name the nominated bank and the confirmer.
Lean document list
Invoice, packing list, B L or AWB, insurance if CIF or CIP, inspection if agreed. Phrase to ISBP 745 standards.
Dates that match logistics
Latest shipment date, presentation period, and expiry place that reflect real vessel schedules and time zones.
Reimbursement and fees
Name the reimbursement bank or account. State who pays advising, confirmation, negotiation, and discrepancy fees.
Fees You Should Plan For
| Fee |
Who pays |
When charged |
| Issuance commission |
Applicant |
Per quarter on LC amount, billed in advance |
| Confirmation commission |
Beneficiary or shared |
Per quarter while confirmation is in place |
| Advising and negotiation |
Per LC wording |
On advice and on payment |
| Reimbursement and SWIFT |
Applicant unless stated |
On issue and at reimbursement |
| Discrepancy fees |
Usually beneficiary |
Only if presentation is not compliant |
Avoid Common Deal Killers
Issuer not accepted
Confirm the seller’s issuer and confirmer lists before you apply. No surprises after issuance.
Overloaded document list
Every extra document is another chance to fail. Keep it tight and standard.
Soft clauses
No beneficiary needs buyer approvals at presentation. Keep conditions objective and documentary.
Bad date math
Match shipment windows, presentation periods, and port realities. Do not set the seller up to fail.
How We Arrange Confirmed LCs That Sellers Say Yes To
Bank route
Issuers and confirmers pre cleared with your seller, with fee bands and timelines.
Wording pack
UCP 600 draft aligned to ISBP 745, lean document list, reimbursement and fee splits done.
Pre-check process
Confirmer pre-checks document templates so the first presentation is clean.
Execution control
We manage drafts, SWIFT messages, and dates until advice lands and payment triggers.
Deliverables
- Named issuer and confirmer shortlist with acceptance emails
- LC draft under UCP 600 with nominated bank, fees, and reimbursement set
- ISBP 745 document templates and presentation checklist
- Timeline mapped to vessel cutoffs and inspection slots
- Closing checklist from application to MT700 advice
Need a Confirmed LC Your Supplier Will Accept
Send your SPA or PO, shipment plan, seller bank details, and any issuer or confirmer list. We will return a route, wording, fee elements, and a timeline to issuance.
Start the Process
This page is informational. Any LC is subject to bank KYC, sanctions checks, and independent credit approval. Confirmation is at the confirming bank’s discretion and depends on issuer, country, goods, and corridor.