This post is from a suggested group
A Letter of Credit (LC) Confirmation is an added irrevocable undertaking by a second bank (the Confirming Bank) to honor or negotiate the LC, in addition to the original commitment made by the Issuing Bank.
In essence, a confirmed Letter of Credit provides the Beneficiary (Exporter) with a double guarantee of payment. If the documents presented by the exporter fully comply with the terms of the LC, the Confirming Bank is obligated to pay the exporter, even if the Issuing Bank fails to do so for any reason.
1 View
