Letter of Credit Confirmation
Letter of Credit Confirmation
A Letter of Credit (LC) is only as strong as the issuing bank and jurisdiction behind it. Sellers exporting to higher-risk markets often demand an extra layer of security: LC confirmation. This guide explains what confirmation means, the types available, why it matters, and how pricing works.
Why Request LC Confirmation?
- Counterparty risk coverage: Protects the seller if the issuing bank defaults.
- Political risk mitigation: Covers events like FX restrictions, sanctions, or capital controls.
- Improved financing: A confirmed LC is often discountable, allowing faster cash access.
- Stronger bargaining power: Sellers can offer more competitive terms knowing payment is secured.
Types of LC Confirmation
How Banks Price Confirmation
When to Use LC Confirmation
Exporters should request confirmation if they are dealing with unfamiliar counterparties, weaker banks, higher-risk jurisdictions, or long-tenor transactions. Buyers may agree to confirmation as a way to secure better commercial terms or convince sellers to ship on time.
Request a Quote for LC Confirmation
Share your LC details—issuing bank, amount, tenor, and corridor—and we will provide confirmation pricing options from our bank network.
Request a QuoteLC confirmation is subject to bank underwriting, compliance, and counterparty approvals. Fees vary by bank, corridor, and transaction risk. Financely Group arranges confirmation services on a best-efforts basis only.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
