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.

BREAKING DOWN '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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RELATED FAQS
  1. What is the difference between "closed end credit" and a "line of credit?"

    Depending on the need, an individual or business may take out a form of credit that is either open- or closed-ended. While ... Read Full Answer >>
  2. What are typical forms of long-term debt for a public company?

    Public companies fund their operational needs and capital expenditures with equity or debt. Most often, companies choose ... Read Full Answer >>
  3. What is the difference between subordinated debt and senior debt?

    The difference between subordinated debt and senior debt is the priority in which the debt claims are paid by a firm in bankruptcy ... Read Full Answer >>
  4. How would a standby letter of credit be used during an export transaction?

    A standby letter of credit is typically used to provide a bank guarantee of payment for an exporter in the event that an ... Read Full Answer >>
  5. What are some reasons banks deny applications for checking accounts?

    Consumers and businesses use credit to finance major purchases or emergency expenses that exceed regular cash flow. Credit ... Read Full Answer >>
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    National interest rates and the amount of revolving credit issued have a negative relationship. Interest rates rise due to ... Read Full Answer >>

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