L/C Advising & Confirmation

LC Advising

What do you expect from an L/C advising service?

Advising Letters of Credit (LC) is part of the trade operation process. The bank requested to advise the LC would do so without any engagement on its part. But the bank shall take reasonable care to check the apparent authenticity of the Credit and to advise out the LC without delay. Banks usually advise LC received from their own Branches overseas or LC of their correspondent Banks. If the Bank chooses not to advise the LC or unable to establish the authenticity the LC, it must inform the Issuing Bank without delay. LC may be advised directly to the importer/beneficiary or through their bankers, depending on the instruction contained in the LC. We can arrange advising bank for your LC that provide you LC advising services with Speed and reliability. Simply ask your buyer to choose the Bank which we introduce to you as the L/C advising bank to benefit from the quality and professional service.

LC Confirmation

What can you do if you are worried about the financial standing or the country risk of the L/C issuing bank?

Confirmation is asked for when the beneficiary is not comfortable with the financial standing of the Issuing Bank or is doubtful about the country risk of the Issuing Bank.

The request to confirm the LC may also come from the beneficiary. In such instances, the Bank (as an Advising Bank) will require the beneficiary to seek consent from the applicant for the Issuing Bank to instruct the Bank to add confirmation to the LC. Confirmation of the LC constitutes a definite undertaking by Bank (Advising Bank) to assume the obligations and liabilities similar to and in addition to those of the Issuing Bank thereby guaranteeing payment should the Issuing Bank default in payment. The Confirming Bank is usually the Advising Bank and will also assume the role of the Negotiating Bank. So If you are doubtful about the financial standing or the country risk of the L/C issuing bank, you may request your buyers to insert the term “Add Confirmation” in the L/Cs advised by the bank which we introduce to you. In so doing, we arrange for a bank to add its confirmation on it and share the same responsibilities and obligations as the L/C issuing bank.