What Is a Bank Confirmation Letter (BCL)?
A bank confirmation letter (BCL) is a letter from a bank or financial institution confirming the existence of a loan or a line of credit that has been extended to a borrower. The letter officially vouches for the fact that the borrower—typicallyan individual, company, or organization—is eligible to borrow a specified amount of funds for a specified purpose.
Key Takeaways
- A bank confirmation letter (BCL) validates that a bank has a line of credit in place with one of its customers.
- The BLC is not a guarantee of payment, but an assurance of the borrower's financial resources to complete a purchase.
- Bank confirmation letters are typically issued to business customers vouching for their creditworthiness.
- Bank confirmation letters can also be issued for a company that is entering into a joint venture project with another company.
- Individuals may request a BCL duringthe purchase of a home or land in order to secure a mortgage or establish creditworthiness with the seller.
How a Bank Confirmation Letter (BCL) Works
A bank confirmation letter's purpose is to assure a third party, generally a seller, that the borrower has access to sufficient financial resources to complete a transaction, such as the purchase of goods. The confirmation letter—sometimesknown as a comfort letter—is not a guarantee of payment, but only an assurance of the borrower's financial resources to make payment.
Bank confirmation letters typically require the signature of representatives of the bank or the financial institution who are authorized to issue such correspondence.
Since a letter of confirmation is issued in regard to a particular transaction or project, it's not transferable to a different transaction or project. If the bank's customer decides to enter into a different deal or purchase, the customer usually is required to obtain a new letter of confirmation.
For example, a prospective home buyer decides to buy a different home than the one specified in the bank confirmation letter; a new BCL would be needed.
Regulations vary from country to country in terms of whether and to what extent a letter of confirmation must state the specific purpose for which a loan or line of credit is being extended to the borrower.
Common Uses of a Bank Confirmation Letter
Bank confirmation letters are most commonly prepared for a business customer of the bank, vouching for the existence of a specified line of credit. The letters often serve to reassure sellers of a large number of goods.
They may also be issued for a company that is entering into a joint venture project with another company. While the letter does not guarantee payment or provision of funds, it does provide an assurance of a high probability of the company receiving payment from the bank's customer.
A bank confirmation letter serves to assure all concerned parties ina business transaction that the bank's customer (the borrower)has, or has available, the necessary financial resources to conclude the transaction.
The most common use of a bank confirmation letter by an individual is duringthe purchase of a home or land. In such cases, the letter provides confirmation to a seller or realtor that the bank's customer is approved for a mortgageup to a specified amount for a proposed purchase.
The letter is not a commitment to buy the property; it is merely a reassurance that the bank’s customer has access to funds to complete a purchase. In most situations, a prospective buyer will not be able to close on a property without having a bank confirmation letter in hand.
Bank Confirmation Letter FAQs
How Do I Get a Bank Confirmation Letter?
A bank confirmation letter can be received from your bank upon request. The bank will issue the letter with the appropriate signatures and provide it to you.
What Is a Bank Certification Letter?
A bank certification letter is a letter issued by a bank that confirms an individual has an account with that bank and the total value of the funds in the account.
What Is a Bank Verification Letter?
A bank verification letter is the same as a bank certification letter; a letter from a bank confirming that an individual has an account at that bank with the total value of the funds in the account.
How Do I Get a Bank Confirmation Letter From My Bank?
To obtain a bank confirmation letter from your bank you may request in-person at a bank branch from one of the bankers, by a phone call to the bank, and depending on the financial institution, through their online platform.
FAQs
A bank confirmation letter (BCL) is a letter from a financial institution validating that a borrower has an existing loan or line of credit. A BCL verifies that the individual or company has the means to borrow a specific amount of money for a specific purpose.
How to get a BCL? ›
To obtain a bank confirmation letter from your bank you may request in-person at a bank branch from one of the bankers, by a phone call to the bank, and depending on the financial institution, through their online platform.
How do I get a bank confirmation letter online? ›
Online Banking
- Log into your FNB Online and select “My bank accounts”
- Select the relevant bank account number which needs a verification letter.
- Select “Account to verify.” and click on “settings”
- Choose the bank letters option and select 'account confirmation letter.
After you have reviewed your account balance, request your bank for a balance certificate. This can be done by approaching your nearest bank branch for making an in-person request.
How do I get a standard bank confirmation letter? ›
- Sign in to your account.
- Choose which one of your bank accounts you'd like the account confirmation letter for.
- Scroll down to 'Your documents'
- Under the 'Your documents' tab, click on 'View'
- Scroll down to 'Bank letters'
- Select the 3 dots next to 'Bank account confirmation letter'
The Bachelor of Civil Law (BCL) is a world-renowned taught graduate course in law, designed to serve outstanding law students from common law backgrounds. The academic standard is significantly higher than that required in a first law degree, and only those with outstanding first law degrees are admitted.
What does BCL stand for? ›
Bachelor of Civil Law, the term used to describe a variety of legal degrees offered by universities in English-speaking countries (as distinct from Canon Law and Common Law)
Who prepares bank confirmation letter? ›
In response to the auditor's original request, the bank will prepare a standardized bank confirmation for audit purposes (regardless of the amount of information requested).
Is a bank confirmation letter the same as a bank statement? ›
A bank account confirmation letter is a written statement from a bank that confirms the details of a customer's account. The letter can also serve as verification of an account's authenticity for third-party transactions.
What is a confirmation letter? ›
A confirmation letter is a memo professionals write in response to an offer or invitation, such as whether they can attend an event, such as reservations, business meetings or appointments. You may also use confirmation letters to document verbal agreements in writing or respond to a job offer .
Bank statements and bank certificates serve different purposes. Bank statements are monthly records that show all your transactions, helping you track your money. They automatically come to you each month. Bank certificates, however, are one-time documents that prove how much money you have at a certain moment.
Can I get a bank balance certificate online? ›
You can apply for a bank balance certificate either online or offline. Most banks provide an online facility wherein you can log into your online bank account and request a bank balance certificate.
How do I get a proof of funds letter from my bank? ›
Submit a request to the bank: Depending on your bank, this process might be referred to as a “verification.” You typically have to make this request in person at a branch location or through a special form online. The bank often gets a document to you within a few days, and usually no more than one week.
How do I get proof of my bank account? ›
Accepted forms of proof
- Bank statements.
- Deposit slips.
- Cheques.
- Download 'Proof of account balance' document from bank (blank out account balance)
TO WHOM IT MAY CONCERN Sir, 1) We certify that, M/s…………………………………………, Address……………………………………………..…………..... (Name the applicant) is / are maintaining a Savings Bank Account / Current Account (tick whichever is applicable) No….…………………………………… (Mandatory) with us since……………………………………
How do I get a bank issued letter? ›
Ask the financial institution holding your assets for a proof of funds letter. Some banks have an online form to fill out while others may require you to come into a branch. Either way, it usually takes no more than a week to receive the letter.
What is BCL certification? ›
Basic Cardiac Life Support (BCLS) and Basic Life Support (BLS) are just the same course, designed to teach the fundamentals of CPR and how to respond to medical emergencies.
How do I get a bank courtesy letter? ›
In-person: The quickest way to obtain a bank letter is to request one in-person. By doing so, you'll be able to ensure that everything you need is on the letter & be able to make changes if necessary. By phone: Another convenient way to obtain a bank letter is to call your bank's support line.
How to get a bank reference letter? ›
How To Request a Bank Reference Letter. Banks won't provide a bank reference letter without the approval of the account holder, so whoever that is will need to be involved. Since bank reference letters are a common occurrence, submitting the application form to the bank as well as any required fee is often all it takes ...
What is a BCL document? ›
A Bank Confirmation Letter (BCL) is a formal document issued by a bank in response to a request from another party, typically confirming the existence of an account, its balance, and the bank's willingness to engage in specified transactions.
