What is a Bank Confirmation Letter (BCL)?
Bank Conrmation also is known as Bank Capability or Bank Confort Letter (BCL):
Bank Comfort Letter BCL commonly referred to as a BCL is typically used in a commodities transaction to demonstrate the nancial capability of the buyer. It is also sometimes referred to as a Bank Capability Letter. A BCL is one type of a Proof of Funds (POF) which can be furnished by a buyer or requested by a seller to complete a transaction. Various other types of POFs such as SWIFT messages, or a MT 799 SWIFT message may be utilized for the same purpose.
BCL is issued by a bank on behalf of their customer who has entered a contract to purchase huge merchandise/commodities from a supplier conrming their nancial capability to carry out the transaction. It also shows that the buyer has sucient funds or nancially capable to complete the business deal. However, it should be clear that the Bank Comfort Letter does not mean any assurance of payment.
BCL is a statement of fact, not a nancial obligation or commitment given by a bank. BCL is not at all equivalent to a Letter of Readiness (RWA). BCL is merely an authenticated swift message from the buyer’s bank that conrms the nancial capability of the buyer in terms of cash or credit facility, to pay for the goods they want to buy.
Paymasters OÜ acts as a provider of Bank Comfort Letter (MT-799) from Top European Banks on behalf of their client to prove their nancial capacity to buy a certain goods/merchandise as per their contract
with the supplier.