Doing business with an unknown bank or a high risk country can present uncertainties. When you receive a Letter of Credit, you may be concerned whether the payment undertaking from that LC issuing bank is reliable, particularly if shipments are going to less familiar markets. If this bank gets into financial difficulties, you may not get paid.
To mitigate this, you may arrange with your buyer to request us to add confirmation on the LC. A confirmed LC gives you a double protection with commitment from both the issuing bank and the confirming bank to make payment. When documents are presented in accordance with the LC, payment from the confirming bank is final.
• Exporters are assured of payment from the confirming bank upon presentation of compliant
documents under the Letter of Credit
• Allows exporter to trade with unknown bank or high risk country
• Documents negotiated or discounted under confirmed Letter of Credit are without recourse
to the seller
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