Confirmed Export Documentary Letter of Credit
When you are unable to assess the issuing bank or country risk, a Confirmed Export Documentary Letter of Credit (L/C) provides the security of knowing that your payment can be guaranteed.
How does a bank confirmation work?
If your buyer is prepared to provide an Export Letter of Credit (L/C) but you are unable to assess the issuing bank or country risk yourself, Arab Bank Australia may be able to arrange “Confirmation” of the credit.
- Peace of mind. Normally your company remains liable for any risks associated with the issuing bank, the payment transfer and the overseas country risk. A bank confirmation passes these risks on to Arab Bank Australia.
- Access to working capital. You have the option of receiving the payment in advance of the due date through non-recourse discounting of the receivable.
- Expanding your business. Confirmations can make it more feasible to expand your business into regions where risks associated with the issuing bank or countries are difficult for you to measure and accept.
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