Confirmed L/C
Category: Payments
Definition (plain English)
A confirmed LC adds a second bank commitment, usually from the seller side, on top of the issuing bank letter of credit.
Why it matters commercially
Confirmation can reduce issuing-bank or country risk for the seller, but it adds cost and still depends on clean document presentation.
Example
An exporter requested confirmation because the buyer bank was in a market where payment and transfer risk were material.
Common mistake
Assuming confirmation fixes all LC risk while ignoring document discrepancies, sanction exposure, expiry dates, and confirmation charges.
Use this in CommerceKit
Payment Terms Cost / Risk Calculator
Use tool →