In the trade industry, suppliers want to make sure that they are going to deal with a financially capable buyer who they can trust. So, before signing the contract, they used to demand the buyer to prove their financial ability by providing Comfort Letters. So, what is Comfort Letter, how it will help buyers to prove their financial strength? This is what we are going to explain in this blog!
What is Comfort Letter?
A Bank Comfort Letters – BCL MT799 is the notification issued by a bank to assure the financial capability of the person involved in the transaction. The main purpose of this MT799 is to show the buyer’s credit status; also, their ability to conclude the deal, without making any default in payment.
It is important to note that the BCL does not give any payment assurance; rather it certifies the buyer’s financial stability in conducting business.
How BCL MT799 Works?
Once the buyer sends a BCL MT799, it creates an assurance to the seller that the buyer is financially stable; to embark on the new project. After receiving the MT799, the seller sends the proof of product (POP) to the buyer’s bank; which shows that the seller has the products readily available to ship. By doing this, BCL MT799 builds trust among both parties. Further, this POP helps the buyer to open LC and SBLC for the upcoming trade transaction.
Importance of Comfort Letters
Well, like all other Financial Instruments, BCL MT799 plays an important role in the trade market. When the trade transaction is going to happen between two traders; who are unknown to each other. BCL can help them to come out of the confusion by boosting confidence & trust. By issuing BCL MT799, the buyer proves their financial ability to their seller. Further, in return, by providing POP, the seller shows the availability of their products.
How to Get Bank Comfort Letters?
Do you require Comfort Letters to prove your financial standing in doing imports and export? Contact us with your BCL request!
Since we have our own trade finance facilities available in European Banks; we lend our facilities on your behalf. So that you can get Comfort Letters from our bank account which shows that you’re financially capable.
Submit your BCL request to us & get the Proof to show your financial worth!
Get Comfort Letter from European Bank Accounts!