Bank Confirmation Letter - BCL

What is a 'Bank Confirmation Letter - BCL'

A bank confirmation letter (BCL) is 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. When is it necessary to get a letter of credit?

    Capitalize on assets and negate risks by using a letter of credit. Letters of credit are often requested for buying, selling ... Read Answer >>
  2. What are the different types of letters of credit?

    Learn more about the different types of letters of credit that are used to facilitate exchanges between parties that might ... Read Answer >>
  3. When do I need a letter of credit?

    Learn more about the function of a letter of credit for both the buyer and the seller, and get some examples showing when ... Read Answer >>
  4. What is a bank's legal liability when issuing a letter of credit?

    Learn the responsibility of banks that issue letters of credit Letters of credits ensure payment on transactions between ... Read Answer >>
  5. When are you legally required to get a letter of credit?

    Learn how exporters or importers who deal in international trade use letters of credit to ensure that transactions are safe, ... Read Answer >>
  6. Can entities other than banks issue letters of credit?

    Obtaining a letter of credit from a non-bank is legally acceptable according to the ICC, but companies tend to prefer to ... Read Answer >>
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