A Bank Confirmation Letter (BCL) is an official letter issued by a bank or financial institution that confirms a borrower’s eligibility for a loan or line of credit. This letter serves as a guarantee, assuring third parties that the borrower—whether an individual, organization, or company—has the financial capacity to borrow a certain amount for a specific purpose. The BCL provides confidence to the recipient that the borrower has sufficient funds to complete a transaction, such as purchasing goods or fulfilling contractual obligations.
At Silver Stone Consultancy, we help clients secure Bank Confirmation Letters, ensuring that their financial strength is clearly communicated and facilitating smoother business transactions.
Bank Confirmation Letter Process
Are you struggling to demonstrate your financial strength to your supplier? At Silver Stone Consultancy, we offer a simple and efficient process to obtain a Bank Confirmation Letter (BCL) – MT799 from European Banks without requiring collateral. Here’s how the process works:
Submission: The buyer submits their request along with relevant documents, including the ICPO, FCO, pro-forma offer, or sales contract related to the trade deal.
Review: We perform an in-depth analysis of the trade deal between the buyer and seller. After reviewing, we inform the parties whether the BCL request is approved or rejected.
Agreement and Payment: If the request is approved, we will ask the buyer to sign the service agreement and pay the necessary administrative charges to proceed with their transaction.
Structuring BCL: After the agreement and payment are completed, we will structure the BCL request with our bank by blocking our own bank limit and then send a draft of the Comfort Letter for the buyer’s approval. Additionally, we will inform the buyer of the BCL issuance fees.
Issuance: Once we receive the draft approval and issuance fees, we instruct our bank to issue the Bank Comfort Letter via SWIFT MT799 to the seller’s bank, confirming the buyer’s fiscal ability to fulfill the contract.
What is a Bank Confirmation Letter (BCL)?
A Bank Comfort Letter (BCL) is a written confirmation from a bank that guarantees the financial capability of the buyer to fulfill their contract. Issued on behalf of the buyer, it assures the supplier that the buyer has the necessary financial strength to complete a purchase, typically for bulk goods or commodities. In international trade, suppliers often demand a BCL before entering into a contract to ensure that the buyer can make payment and avoid defaults.
By obtaining a BCL, buyers demonstrate their financial ability to carry out large-scale purchases and enhance trust between parties, which is essential for successful business transactions.
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MT799 SWIFT Message
An MT799 is a confirmation SWIFT message issued by the bank on behalf of the client, affirming that they have sufficient funds to complete the agreed-upon transaction. While it assures the seller of the buyer’s financial capability, it does not guarantee payment. We help facilitate this process by providing MT799 from rated European banks, even without requiring collateral from the buyer. Once we process your BCL request, our bank will send the MT799 message to the supplier, confirming the buyer’s financial strength for the transaction.
How Does the BCL Work?
The BCL MT799 serves as proof of the buyer’s financial capacity to purchase the agreed quantity of goods. Once the seller receives the MT799, they must provide Proof of Product (POP) to the buyer, showing that the goods are available and ready for delivery. Following this, the buyer will need to provide a Letter of Credit (LC), Standby LC, or Bank Guarantee (BG) to initiate the transaction.
BCL Cost
The cost for obtaining a BCL generally includes issuance fees, advising fees, transmission fees, and SWIFT charges. These charges must be covered by the applicant and paid to the issuing bank before the BCL is issued.
Get Your Bank Confirmation Letter in 48 Hours
At Silver Stone Consultancy, we understand that obtaining a BCL from a reputable bank can be challenging, especially without the required cash collateral. We offer a simple solution by providing the BCL MT799 on your behalf, utilizing our own bank facilities to ensure the transaction proceeds smoothly. With over three decades of experience, we’re equipped to meet your trade finance needs, allowing you to access the required BCL in as little as 48 working hours.
Need a BCL to finalize your trade deal? Contact Silver Stone Consultancy today for a quick and hassle-free process. Let us help you demonstrate your financial capability and secure larger contracts with confidence!