In the trade industry, suppliers want to make sure that they are going to deal with a financially capable buyer who can pay on time. So, before signing the contract, they need to demand the buyer to prove their financial ability by providing Comfort Letter. So, what is a Comfort Letter, how it will help buyers to prove their financial strength, and how it works in the global trade market? Let us discuss in this article.
What is Comfort Letter?
Bank Comfort Letter is the notification issued by a bank via an authenticated SWIFT MT799 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, their ability to conclude the deal, without making any default in payment.
Get BCL MT799 Without Blocking Cash Funds – Click Here!
It is important to note that the Letter of Comfort does not give any payment assurance; rather it certifies the buyer’s financial position in conducting business.
How does BCL MT799 Works?
Once the buyer sends a BCL MT799, it creates an assurance to the seller that the buyer is financially capable to enter into the new project. After receiving the MT799, the seller sends the proof of product (POP) to the buyer’s bank through which the seller has the required sales ability. This information letter builds trust among both parties. Further, the POP helps the buyer to open a Letter of Credit and SBLC for the upcoming trade transaction.
Show Your Financial Stability With BCL MT799 – Click Here!
Importance of Comfort Letters
Well, like all other Financial Instruments, Bank Comfort Letters play an important role in the trade market. When the trade transaction is going to happen between two traders, who are unknown to each other, Comfort Letters can help them to assure each other’s capability of doing business. By issuing MT799, the buyer proves their financial strength to their seller. Further, in return, by providing POP, the seller shows the availability of their product.
How to Get Bank Comfort Letters?
Do you require Comfort Letters to prove your financial standing in doing imports and exports? Contact us with your MT799 request!
Since we have our own Trade Finance facilities available in European Banks, we lend our credit lines on your behalf. So, you can get Comfort Letters from our bank account without showing your financial capability without blocking your own cash funds.
Submit your MT799 request to us & get the Proof to show your financial worth!
