What Is a Bank Confirmation Letter (BCL)?

A bank confirmation letter (BCL) is a letter from a bank or financial institution confirming the existence of a loan or a 澳洲幸运5开奖号码历史查询:line of credit that has been extended to a borrower. The letter offic🍷ially vouches for the fact that the borrower—typically an individual, company, or organization—is eligible to borrow a specified amount of funds for a specified purpose.

How a Bank Confirmation Letter (BCL) Works

A bank confirmation letter's purpose is to assure a third party, generally a seller, that the borrower has access to sufficient financial resources to complete a transaction, such as the purchase of goods. The confirmation letter—sometimes known as a 澳洲幸运5开奖号码历史查询:comfort letter—is not a guarantee of payment, but only an assurance of the borrower'𒐪s financial resources to make pa💜yment.

Bank confirmation lettꦗers typically require the signature of representatives of the bank or the financial institution who are authorized to issue sꦕuch correspondence.

Since a letter of confirmation is issued in regard to a particular transaction or project, it's not transferable to a different transaction or project. If the bank's customer decides to enter into a different deal or purchase, the customer usually is required to obtain a new letter of confirmation.

For example, a prospective home buyer decides to buy a different home than the one specified in the bank con♑firmation letter; a new BCL would be needed. 

Regulations vary from country to country in terms of whether and to what extent a letter of confirmation must state the specific purpose for which a loan or line of credit is being extꦐended to the borrower.

Common Uses of a Bank Confirmation Letter

Bank confirmation letters are ⛄most commonly prepared for a business customer of the bank, vouching for the existence of a specified line of credit. The letters often serve to reassure sellers of a large number of goods.

They may also be issued for a company that is entering into a 澳洲幸运5开奖号码历史查询:joint venture project with another company. While the letter does not guarantee payment or provisi🐲on of funds, it does provide an assurance of a high probability of the company receiving payment from the bank's customer.

The most common use of a bank confirmation letter by an individual is during the purchase of a home or land. In such cases, the letter provides confirmation to a seller or realtor that the bank's customer is approved for a mortgage up to a 🦩specified amount for a proposed purchase.

The letter is not a commitment to buy the property; it is merely a reassurance that the bank’s customer has accessꦐ to funds to comp♓lete a purchase. In most situations, a prospective buyer will not be able to close on a property without having a bank confirmation letter in hand.

Bank Confirmation Letter FAQs

How Do I Get a Bank Confirmation Letter?

A bank confirmation🎃 letter can be received from your bank upon request. The bank will issue the letter with the appropriate signatures and prov൩ide it to you.

What Is a Bank Certification Letter?

A bank certification letter is a letter issued by a bank that confirms an individual has🌊 an accoun👍t with that bank and the total value of the funds in the account.

What Is a Bank Verification Letter?

A bank verification letter is the same as a bank certification letter; a letter from a bank confirming that an individual h🍬as an account at that bank with the total value of the funds in the account.

How Do I Get a Bank Confirmation Letter From My Bank🍒?

To obtain a bank confirmation letter from your bank you may request in-person at a bank branch from one of the bankers, ♊by a phone call♈ to the bank, and depending on the financial institution, through their online platform.