Confirmed Letter of Credit
A Letter of credit is issued by a financial institution and its purpose is to ensure full and timely payments to a seller. The letter basically serves as a guarantee to business to minimise the level of risk. A Confirmed Letter of Credit is sent to the customer who had applied for a guarantee, stating that there request has been approved by the financial institution.
In the first paragraph, mention that the financial institution has approved the request filed by the customer and also state the date. In the second paragraph, mention that the letter is irrecoverable and inform the customer regarding the consequences of a failure to make payment in time.
In the concluding text, ensure the customer that the financial institution will provide the best service for their business.
Instructions
-
1
Sample Confirmed Letter of Credit
Harper Anthony
Managing Director,
Solver Exporters Pvt. Limited
March 20, 2012
Subject: Credit Letter Confirmation
To Whom It May Concern
I am writing this letter in reference to the Letter of Credit we received on March 18, 2012. We are pleased to go ahead with the transaction with you and are pleased to receive the confirmation. Gold Bank believes that you have thoroughly read the terms and conditions of the contract before making the decision.
Gold Bank wants to bring it to your knowledge that the Letter of Credit issued by us is irrecoverable. The document means that you are legally liable to make the required payment within the rime period or before the due date. A failure to do so could result in legal action against you.
We sincerely hope that the situation will not arise and the bank is looking forward to maintain healthy business relations with your company.
Yours sincerely,
Martin Davidson
Branch Manager
Temple Road Branch
Gold Bank -
2
Template of Confirmed Letter of Credit
[Recipient’s Name]
[Recipient’s Company]
[Recipient’s Title]
[Date]
Subject: Credit Letter confirmation
To Whom It May Concern
This is in reference to the Letter of Credit ........................ received from you on .................. We are grateful to you for giving us the opportunity to help in your business endeavours. The bank is hopeful that you have carefully read all the terms and conditions before signing the contract.
We would like to bring to your notice that a failure to clear the due in time would result in legal action against your company. However, we sincerely hope that the situation does not arise considering your company’s previous record with us.
We assure to provide the best service to our customers.
Yours sincerely,
[Sender’s Name]
[Sender’s Title]
[Company’s Name]
