Bank Confirmation Letter - BCL

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DEFINITION of 'Bank Confirmation Letter - BCL'

A letter confirming that a line of credit has been secured from a financial institution or bank. The bank confirms that a person is eligible for a specified amount of borrowed funds to be used for a predetermined purpose.

INVESTOPEDIA EXPLAINS 'Bank Confirmation Letter - BCL'

A bank confirmation letter may be used in a variety of situations or transactions. Its primary purpose is to provide proof to another party that you have attained financing. For example, when looking to buy a house, you may be required to supply a bank confirmation letter to the seller. The letter indicates that you have been approved for a mortgage and have the necessary funds to complete the purchase.

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