How does a bank confirmation work?
If your buyer is prepared to provide an Export Documentary 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.
Key Benefits
- 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.
For more information please contact:
Claudio Piccinini
Senior Relationship Manager, Trade Finance
Telephone: +61 2 9377 8915
Fax: +61 2 9221 5428
Mobile: +61 421 097 656
Email: trade@arabbank.com.au