Letter Of Credit Confirmation Service
Bottom line:
add a second bank’s promise to pay. We secure confirmation on export LCs when the issuing bank or country risk is outside your policy. Pricing depends on issuer strength, country, tenor, currency, and documents. We coordinate wording, SWIFT, and reimbursement so funds arrive without delay.
What We Confirm
- UCP 600 documentary credits
- ISP98 standbys when beneficiary requires confirmation
- Sight and usance, including UPAS
Standards & Messaging
- MT700 issue, MT707 amendment
- MT754 advice of payment or negotiation
- Reimbursement via MT742, MT103, MT202 COV
Who It Fits
- Exporters with buyer LCs from higher risk banks
- Corporate policy requires confirmed LCs
- Buyers who accept confirmation costs
How Confirmation Works
- Issue And Wording.
Buyer’s bank issues the LC. We align wording to UCP 600 or ISP98 and beneficiary terms.
- Confirming Bank.
We place the LC with banks that accept the issuer and country risk at target pricing.
- Advice And Fees.
Confirmation is added. Fee letters and reimbursement path are set.
- Presentation.
Documents are checked. At sight, funds flow per reimbursement. At usance, acceptance and maturity are tracked.
- Settlement.
Proceeds move via MT103 or MT202 COV as applicable.
Typical Confirmation Fee Drivers
| Factor |
Impact |
| Issuing Bank Quality |
Investment grade banks price tighter than unrated local banks. |
| Country Risk |
Higher risk jurisdictions lift the fee band and can limit capacity. |
| Tenor And LC Type |
Usance and transferability add risk time and complexity. |
| Currency And Amount |
Large amounts or scarce currencies widen spreads. |
| Documents And Discrepancy Risk |
Complex condition sets tend to price wider. |
What We Cover
- Bank selection and soft clear
- LC wording review and confirmability
- Fee benchmarking and acceptance windows
- Reimbursement bank and SWIFT path
- Presentation and discrepancy management
- Silent confirmation or risk participation when needed
- Status updates through maturity
- Amendments and extensions
Ready To Add Confirmation
Send the draft LC, issuer details, and shipment plan. We will confirm availability and pricing.
Request A Term Sheet
Services are for corporate users. This is not a commitment to confirm. All engagements are subject to KYC, AML, sanctions, and confirming bank approvals.