Confirmation availability analysis
You don't have to rely on a risky issuing bank. We can tie your payment to a second bank's guarantee.
How confirmation shifts risk
Without confirmation the risk stays with the exporter; with it, it moves to a strong confirming bank.
Unconfirmed — issuing bank
Risky/dollar-constrained, payment uncertain
Unconfirmed — outcome
Risk stays with the exporter
Confirmed — issuing bank
Risky but no longer the only backstop
Confirmed — confirming bank
Adds an independent payment guarantee
Risk transfer
Payment risk moves to the confirming bank
Exporter
Protected by a strong bank's guarantee
Routing to the right confirming bank
If confirmable, to the best address; if not, to an alternative safeguard
The problem
When you sell into a dollar-constrained or high-risk issuing-bank market, the letter of credit alone is not enough security. If the issuing bank won't or can't pay, the goods are gone, the money never arrives, and the risk sits entirely with you. Most exporters realize this only when a deal breaks and payment fails to come. Yet this risk can be measured while the transaction is being set up — and shifted to another bank.
What we do
We analyze whether your transaction is confirmable and, if so, which bank is the right confirming party. The goal: to take payment risk off the risky issuing bank and move it to a strong confirming bank. That way your money is secured even if the issuing bank doesn't pay.
How we do it
We assess the issuing bank's country and correspondent risk profile. We check whether the LC is structured to allow confirmation (freely/restrictedly available, confirmation authority). If needed, we propose amendments to make the text confirmable and route it to the right confirming bank. If confirmation isn't available, we say so upfront and evaluate alternative payment safeguards.
What you gain
- A second bank's guarantee that secures your payment even if the issuing bank doesn't pay.
- You set up the most critical protection layer for high-risk-market sales from the start.
- If confirmation isn't available, you learn it during the transaction — not when a deal breaks.
- By routing to the right confirming bank, you avoid unnecessary cost and rejection risk.
Relevant rules
UCP 600 art. 2 (definition of confirmation and confirming bank), art. 8 (undertaking of the confirming bank), art. 6 (availability / place of presentation). A confirmation is an independent undertaking added to that of the issuing bank.
Let's secure your sales into high-risk markets
We'll assess your transaction's confirmability for free.