A confirmed letter of credit is typically used when the issuing bank of the letter of credit may have questionable creditworthiness, and the seller seeks to get a second guarantee to assure payment. The letter is a means of communication to convey the procedure of transaction and its legal consequences. In this letter, the writer indicates the reader that the reader is a valued customer and you would like to serve them at any time.
Confirmed letter of credit is another guaranteed letter given by the second financial agency on the letter credit for the client. This confirmed letter is used while issuing payment by the issuing agency’s letter of credit is not favorable to the seller. A letter of credit is said to be confirmed when advising bank or another bank gives guarantee for the payment. A confirmed letter of credit provides more security than an unconfirmed letter of credit. These letters reduce the risk of payment failures to a minimum. These letters are used when the seller is trading in a high-risk area, or when the buyer is unfamiliar. Here are few templates and sample letters to use:
Confirmed Letter Of Credit Writing Tips
- Write about the terms and conditions of the letter of credit.
- Write about the repayment terms and also tell the reader that if he does not make the payment on time, then it would result in some legal course.
- Write the letter of credit in a straightforward manner, and it should be a business deal.
- Write that you are looking forward to a long lasting business relationship.
- Always remember to use a professional tone.
Confirmed Letter Of Credit Template
Confirmed letter of credit is the assurance given by another financial agency for the seller when the payment issuing bank’s letter of credit is questionable and has some problem with it. Use our free Confirmed Letter of Credit to help you get started. Simply download the .doc or pdf file and customize it. If you need additional help or more examples check out some of the sample letters below.
From (Sender’s name and address)
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To (Receiver’s name and address)
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———-
Subject – Confirmed letter of credit
Dear sir/madam
I am writing this letter to you as an acknowledgment of the letter of credit that is confirmed by you. Kindly confirm that you agree to the terms and conditions before the discharge of the letter of credit. Through this letter, I would like to tell you that this letter of credit is irrecoverable and it shows that it is an agreement in legal terms and you are bound to make the payment before the due date. If you do not make the payment in time, then we will have to take some legal actions. We have the confidence that you will not give us a chance to go ahead with any legal proceedings. We like to serve you anytime, and we assure you to provide our services to you just like all our valuable customers.
Yours truly,
Thanking You.
Sample Letter
From
Lorenzo J. Granata
Credit officer
Downtown First Bank
1549 Carson Street
San Diego, CA 92101
March 7, 2017
To
William F.Wright
Global Freights&Services
1872 Hillcrest Avenue
Waltham, MA 02154
Subject – Confirmed letter of credit
Dear Mr.Wright
This letter is being written to you to make you aware that we have received the letter of credit for which you have given the confirmation. We are sure that you have read the terms and conditions carefully before releasing the letter of credit. I would like to make you understand that said letter of credit is irrecoverable which indicates that it is a legal agreement and you will have to make the payment for the mentioned amount within the specified time. If you fail to do so, then we would be forced to take legal action against you. We are sure that you will not let such a situation happen. We are always happy to serve you, and we shall ensure that we extend our services to you in the way we do for our other valuable customers.
Thanking You.
Yours truly,
Lorenzo J.Grananta
Email Format
This letter would be addressed to any customer informing them about the confirmation of letter of credit received by you. The letter is a way to tell them about the transaction process and its legal implications. The letter is a way to show the customer that you value your client and are happy to serve them.
Subject: Credit letter confirmation
Dear Mr. Steven,
I am writing to you to inform you that we are pleased to receive the letter of credit confirmed by you. I hope that you have carefully considered the terms and conditions before issuing the letter of credit.
I would like to bring to your kind notice that the letter of credit issued by is an irrecoverable letter of credit, which implies it is a legal agreement and you would require you to pay the amount stated in the letter within the stipulated period. Failure to make payments on time, we would be forced to take legal course. We hope that you won’t let that situation arise. We are glad to serve, and we assure to provide our services to you like all our valuable customers.
Yours truly,
Linda Plunk
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