Confirmations of documentary credits
How does a bank confirmation work?
If your buyer is prepared to provide an Export Letter of Credit (L/C) but you are unable to assess the issuing bank or country risk yourself, Westpac may be able to arrange 'Confirmation' of the credit.
Providing that all documents presented conform to the L/C, you receive a guarantee of payment from Westpac should there be problems with the Issuing Bank of the overseas country preventing payment.
Confirmation is only available if the issuing bank agrees to it. We recommend that you discuss any proposals with your Relationship Manager or Trade Specialist as early as possible and include your requirements for a 'Confirmed' Export Letter of Credit in your contract as the payment method. Confirmation requests will then be reviewed on a case-by-case basis.
- Reduces bank and country risk
- Access to working capital
- Expand your business to developing countries.
Things you should know
Credit facilities are subject to application and the Bank's normal lending assessment criteria. Fees and charges may apply to the products and services listed. Full details of the Terms and Conditions for all the products and services which do not have a Product Disclosure Statement are available on application.