Confirmed Letter of Credit (MT700) – Double Guarantee, Zero Risk
Ensure Secure & Reliable Global Trade Payments | 100+ LC-Secured Projects | Global SWIFT Bank Network Connected
⚠️ Have You Lost a Deal Due to Lack of Payment Guarantees?
Recently, an exporter lost $500,000 because no LC was in place. At NNRV, we structured a tailored LC in 48h, saving their next $3M deal. Don’t trade on blind trust. Secure every deal with confidence.
🧠 « Without NNRV’s LC, I would’ve lost my biggest contract. Their team is responsive and knows the game. »
✅ What is a Confirmed Letter of Credit (LC)?
A Confirmed Letter of Credit (Confirmed LC) is a secure financial instrument that reduces payment risks in international trade. Unlike a standard LC, a Confirmed LC involves a second confirming bank—typically in the seller’s country—that guarantees payment to the exporter even if the issuing bank defaults.
This makes Confirmed LCs ideal for transactions involving emerging markets, high-risk environments, or new business partners.
At NNRV Trade Partners, we structure and issue Confirmed LCs (MT700) via our network of SWIFT-enabled banks, ensuring all operations comply with UCP 600 & ISP98 standards.
🧠 “Thanks to NNRV, we got a French bank to confirm an LC from an unstable market. That saved a €2M deal.” — W. Ahmed, Steel Export – EU/MENA
📌 How Does a Confirmed LC Work?
1️⃣ Buyer’s Bank Issues LC – The buyer arranges a Letter of Credit with their issuing bank.
2️⃣ Confirming Bank Adds a Guarantee – A second, reputable bank (usually in the seller’s country) confirms the LC, guaranteeing payment.
3️⃣ Seller Ships Goods & Presents Documents – The seller delivers goods as per the contract and submits compliant shipping documents.
4️⃣ Documents Verified – Both banks verify compliance
5️⃣ Confirming Bank Ensures Payment – If the issuing bank fails to pay, the confirming bank honors the payment.
🔍 Key Features of a Confirmed LC
🔹 Dual Bank Guarantee – Provides extra security as both the issuing bank and confirming bank guarantee payment.
🔹 Risk Mitigation for Exporters – Protects exporters from default risk if the issuing bank or buyer fails to pay.
🔹 Increased Credibility – Strengthens trust between international buyers and sellers, especially in high-risk markets.
🔹 Complies with UCP 600 & ISP98 – Governed by international trade finance regulations for global acceptance.
🔹 Ideal for Emerging Markets – Used in cross-border transactions where political or economic risks are high.
📄 Who Benefits from a Confirmed LC?
✔ Exporters & Suppliers – Ensures guaranteed payment for goods or services.
✔ Importers & Buyers – Provides stronger credibility when dealing with international suppliers.
✔ Banks & Financial Institutions – Helps manage risks in high-value international trade deals.
✔ Businesses Trading in Unstable Markets – Reduces exposure to currency fluctuations, banking instability, and political risks.
📊 Comparison: Confirmed LC vs. Standard LC?
| Feature | Standard LC | Confirmed LC |
|---|---|---|
| Payment Guarantee | By issuing bank only | By issuing & confirming bank |
| Risk Mitigation | Moderate | High |
| Additional Bank Security | ❌ No | ✅ Yes |
| Best for Unstable Markets | ❌ No | ✅ Yes |
| Compliance with UCP 600 | ✅ Yes | ✅ Yes |
📄 Required Documents for a Confirmed LC Issuance
To initiate a Confirmed LC, we require:
✔ Sales Contract / Proforma Invoice – Defines Trade terms & value agreement.
✔ Company Registration Documents – Business license, incorporation certificate.
✔ Financial Statements (6-12 Months) – Bank reports & audited financials for risk assessment.
✔ Shipping Documents – Bill of lading, commercial invoice, packing list, insurance.
✔ Insurance Certificate – For CIF/CIP or risk-covered terms.
✔ Letter of Credit Application Form – Specifies LC terms, Confirming Bank Requirements ( If Applicable ) & Details LC structure.
🏦 Confirmed LC Issuers – Our Partner Banks
We work with top-tier global banks to issue and confirm LCs, ensuring secure international trade transactions.
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | Region |
| HSBC Hong Kong | HSBCHKHHXXX | Global credibility, rapid confirmations | Higher compliance costs | 0.5% – 10% | 1–5 days | $1M | Asia |
| BNP Paribas (France) | BNPAFRPP | Eurozone strength, flexible LC terms | May require French legal compliance | 0.5% – 8% | 2–7 days | $1M | Europe |
| Mashreq Bank (UAE) | BOMLAEAD | Strong in MENA trade, reliable confirming | Not widely accepted outside UAE | 0.5% – 7% | 2–6 days | $500K | MENA |
| Standard Chartered (Dubai) | SCBLAEAD | Ideal for emerging markets, trusted brand | Due diligence process is longer | 0.5% – 7% | 2–6 days | $500K | Global |
| Bank of China (Hong Kong) | BKCHHKHHXXX | Strong China trade network, fast LC SWIFT flow | Less flexible for startups | 0.5% – 7% | 2–6 days | $1M | Asia |
| UOB (Singapore) | UOVBSGSG | Quick execution, Southeast Asia coverage | Smaller international presence | 0.5% – 6% | 2–5 days | $1M | Asia |
| Crédit Agricole (France) | AGRIFRPP | Strong European compliance, trusted EU bank | Limited flexibility on short-tenor LCs | 0.5% – 7% | 2–6 days | $1M | Europe |
📩 Other confirming banks available based on region and project size.
📢 All Confirmed LCs comply with ICC UCP 600 and ISP98 regulations.
🎯 Why Use a Confirmed LC?
| 🔒 Feature | ✅ Benefit |
|---|---|
| Dual Bank Guarantee | Seller paid even if buyer’s bank fails |
| Emerging Market Risk Cover | Political/economic instability protection |
| Bank-Level Payment Security | Seller trust guaranteed |
| Enhanced Credibility | Shows importer’s financial strength |
| UCP 600 / ISP98 Compliance | Globally regulated and accepted |
🛠️ Our 5-Step Confirmed LC Process
Submit Application & Trade Documents
LC Structuring & Confirmation Draft
Client Review & Approval
Fee Payment & SWIFT LC Transmission
LC Issued & Confirmed – Payment Guaranteed
💬 “We couldn’t find a seller due to risk. NNRV arranged a confirming bank in our region—deal saved.” – Lina F., Agroexport – East Africa
🔍 Confirmed LC vs Standard LC
| Feature | Standard LC | Confirmed LC |
|---|---|---|
| Payment Guarantee | Issuing bank only | Issuing + confirming bank |
| Risk Protection | Moderate | High |
| Accepted in Risk Zones | ❌ Limited | ✅ Yes |
| Best for Exporters | Moderate assurance | Maximum assurance |
| Governing Rules | UCP 600 | UCP 600 + ISP98 |
💡 Why Choose NNRV Trade Partners?
✔️ Confirmed LC Structuring from A to Z
✔️ Access to Global Confirming Banks
✔️ Expertise in Complex Jurisdictions
✔️ Full Support from Draft to Payment
✔️ “Accepted or Refunded” Guarantee
✔️ ICC-Verified & SWIFT-Enabled
📌 Confirmed LC deals from $500K to $100M+
💡 Why Choose NNRV Trade Partners for Confirmed LCs?
✔ Expert Trade Finance Advisory – Tailored ( design, negotiation, issuance, and monitoring ) solutions to secure your global trade transactions.
✔ Access to Global Banking Network – Get LC confirmation from top financial institutions.
✔ Fast Processing & Approval – Quick turnaround for urgent trade transactions.
✔ Comprehensive Risk Management – Reduce exposure to payment risks in unstable markets.
✔ End-to-End Support – From LC issuance to payment execution.
✔UCP 600 / ISP98 Expertise – Trusted handling of trade compliance.
💲 Fees & Conditions
Fees vary based on:
Transaction size
Country risk
LC tenor & confirmation period
Confirming bank selection
🔹 Speak with our experts to structure your LC and get tailored pricing.
🧠 Real Testimonials
“BNP wouldn’t trust our buyer’s bank alone. NNRV added confirmation and secured our $2.8M contract.”
Ali H., Machinery Exporter – France
“We now demand Confirmed LCs from all new buyers in Africa. NNRV handles it all.”
Sarah T., Agri Trader – Netherlands
❓ Top 5 FAQs – Answered by Experts
1. Who needs a Confirmed LC?
Exporters dealing with unfamiliar or high-risk markets.
2. What’s the main difference with a normal LC?
A Confirmed LC adds a second guarantee from another bank.
3. Can NNRV help me choose the confirming bank?
Yes. We match your transaction with the ideal institution.
4. How long does it take to issue?
Usually 2–6 business days after document approval.
5. Is confirmation mandatory?
No—but it’s recommended for volatile markets or new partners.
🔗 Related Services
Front-to-Back LC Structuring
📖 Strategic Blog Posts
When Should You Use a Confirmed LC?
LC Confirmations in Africa–Europe Trade: Real Cases
How to Get Your LC Confirmed by a Top EU Bank
🚀 Get Your Confirmed LC Today!
Trade in high-risk markets with complete confidence. Let NNRV Trade Partners secure your next deal with a Confirmed Letter of Credit (MT700).
📩 Book Your Free Pre-Diagnosis Today
☎️ Talk to an Expert | 🌍 Trusted in 40+ Countries | ✅ $500K to $100M+ Confirmed LC Structuring.
Confirmed Letter of Credit (LC) – Securing International Trade Beyond Borders
Imagine you are exporting €2M worth of steel to a buyer in a politically unstable country. You deliver the goods, but payment is uncertain. This is where a Confirmed Letter of Credit (Confirmed LC) becomes a game-changer.
Unlike a standard LC, a Confirmed LC adds a second bank—typically in the seller’s country—that guarantees payment even if the buyer’s bank defaults. This extra layer of security turns risky trade deals into predictable, reliable transactions.
Real-World Impact
“We couldn’t proceed with a major order in East Africa due to banking instability. NNRV arranged a confirming bank locally, and the deal went through without a hitch.” – Lina F., Agroexport
How a Confirmed LC Protects Your Trade
- Dual Bank Guarantee: Both the issuing and confirming bank are liable, drastically reducing payment risk.
- Emerging Market Coverage: Ideal for high-risk jurisdictions or new trading partners.
- Enhanced Credibility: Builds trust with suppliers and partners worldwide.
- UCP 600 & ISP98 Compliance: Fully aligned with international trade standards.
Step-by-Step Process
- Buyer Requests LC: Initiates a standard LC with their bank.
- Confirmation Added: A reputable confirming bank joins to guarantee payment.
- Shipment & Documentation: Seller ships goods and submits compliant documents.
- Verification: Banks check documentation for compliance.
- Payment Execution: Confirming bank pays if the issuing bank defaults.
Key Advantages
- Maximum Payment Security: Dual-bank guarantee ensures seller protection.
- Faster Trade Confidence: Buyers and sellers trust each other instantly.
- Customizable Structure: Tenor, amount, and conditions adapted to your contract.
- Global Acceptance: Recognized by international banks and partners.
- Risk Mitigation: Covers political, economic, and buyer default risks.
Who Should Use Confirmed LCs?
- Exporters in emerging or unstable markets
- Importers seeking credibility with international suppliers
- Banks managing high-value or complex cross-border deals
- Companies negotiating high-stakes contracts requiring payment guarantees
Why NNRV Trade Partners?
- Expert structuring for any sector or region
- Access to top confirming banks worldwide
- Quick issuance and compliance checks
- End-to-end transaction support, from application to payment
- ICC-verified and SWIFT-enabled issuance
With NNRV, your Confirmed LC deals—from $500K to $100M+—are secure, fully compliant, and designed to mitigate risk while fostering global business growth.
Strategic Advantages of Using a Confirmed LC in Global Trade
Expanding into new markets or dealing with high-value contracts requires more than just trust—it demands strategic financial tools. A Confirmed Letter of Credit (Confirmed LC) is not just a payment guarantee; it’s a key instrument for trade strategy.
Turning Risk into Opportunity
When entering emerging markets, businesses often face political, economic, and currency risks. By using a Confirmed LC, exporters and importers can:
- Mitigate Payment Risks: Reduce uncertainty with a dual-bank guarantee, allowing confidence in contract fulfillment.
- Negotiate Better Terms: Secure favorable delivery schedules, pricing, or extended payment timelines thanks to bank-backed credibility.
- Build Strategic Partnerships: Suppliers are more willing to collaborate when payment is guaranteed, opening doors to long-term contracts.
Optimizing Cash Flow & Financing
A Confirmed LC can also serve as a financial planning tool:
- Improves predictability of cash inflows
- Reduces the need for upfront capital or letters of credit from multiple sources
- Enables structured trade financing with banks, allowing companies to allocate resources strategically
Strategic Scenarios
- High-Risk Buyer Markets: Use a confirming bank in the seller’s country to secure payment even if the buyer’s bank is unstable.
- New Supplier Relationships: Enhance credibility and win supplier confidence through a dual-bank guarantee.
- Large-Scale International Deals: Reduce negotiation friction by assuring partners that payment is secure and predictable.
Why Strategy Matters with Confirmed LCs
Confirmed LCs are more than compliance tools—they are strategic levers to:
- Expand into risky or underserved markets with confidence
- Strengthen supply chain reliability
- Enable predictable growth by mitigating financial uncertainty
- Gain competitive advantage by demonstrating robust financial backing
By integrating Confirmed LCs into your international trade strategy, NNRV Trade Partners helps you turn financial guarantees into business growth engines, ensuring secure, scalable, and strategic global operations.
Risk Management & Compliance with Confirmed Letters of Credit
International trade carries inherent risks—payment defaults, document discrepancies, political instability, and regulatory challenges. A Confirmed Letter of Credit (LC) acts as a robust safeguard, ensuring both exporters and importers navigate these risks securely.
Mitigating Financial Risk
- Dual Bank Guarantee: The confirming bank guarantees payment even if the issuing bank or buyer defaults, reducing exposure for exporters.
- Document Compliance Assurance: Payment is strictly linked to presentation of compliant shipping and financial documents, minimizing disputes.
- Currency & Political Risk Protection: By confirming LCs in the exporter’s jurisdiction, companies are insulated from foreign exchange fluctuations and unstable market conditions.
Regulatory Compliance
Confirmed LCs are governed by global trade regulations, providing legal certainty and enforceability:
- Fully aligned with UCP 600 rules by the International Chamber of Commerce (ICC)
- Compatible with ISP98 standards for documentary credits
- Issued via SWIFT MT700 messaging, ensuring secure, trackable, and standardized communication between banks
Risk Scenarios Addressed
- Issuing Bank Default: Confirming bank pays the exporter directly, eliminating transaction risk.
- Buyer Insolvency: Ensures payment even if the importer fails to meet contractual obligations.
- Documentary Discrepancies: Banks verify all shipping and financial documents, reducing the likelihood of disputes or delays.
- Cross-Border Legal Challenges: International compliance protects against jurisdictional uncertainties in high-risk markets.
Strategic Compliance Benefits
- Enhances corporate governance and audit readiness
- Reduces operational and financial risk in high-value deals
- Strengthens reputation with global suppliers and partners
- Provides a documented trail of compliance for regulators, auditors, and financial institutions
By using Confirmed LCs with NNRV Trade Partners, companies not only secure payment but also implement a rigorous risk management and compliance framework that supports sustainable, cross-border growth.
Top 40 Banks for Confirmed LCs
NNRV Trade Partners collaborates with leading global banks to issue and confirm Letters of Credit, ensuring secure international trade transactions.
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Minimum Transaction | Region | LC Types |
|---|---|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | Global credibility, rapid confirmations | Higher compliance costs | 0.5%-10% | 1-5 days | $1M | Asia | Confirmed, Transferable |
| BNP Paribas France | BNPAFRPP | Eurozone strength, flexible LC terms | May require French legal compliance | 0.5%-8% | 2-7 days | $1M | Europe | Confirmed, Transferable |
| Mashreq Bank UAE | BOMLAEAD | Strong in MENA trade, reliable confirming | Not widely accepted outside UAE | 0.5%-7% | 2-6 days | $500K | MENA | Confirmed, Revolving |
| Standard Chartered Dubai | SCBLAEAD | Ideal for emerging markets, trusted brand | Due diligence process is longer | 0.5%-7% | 2-6 days | $500K | Global | Confirmed, Performance |
| Bank of China Hong Kong | BKCHHKHHXXX | Strong China trade network, fast SWIFT flow | Less flexible for startups | 0.5%-7% | 2-6 days | $1M | Asia | Confirmed, Transferable |
| UOB Singapore | UOVBSGSG | Quick execution, Southeast Asia coverage | Smaller international presence | 0.5%-6% | 2-5 days | $1M | Asia | Confirmed, Commercial |
| Crédit Agricole France | AGRIFRPP | Strong EU compliance, trusted bank | Limited flexibility on short-tenor LCs | 0.5%-7% | 2-6 days | $1M | Europe | Confirmed, Transferable |
| Barclays UK | BARCGB22 | Reliable for international trade, strong EU presence | Documentation-heavy | 0.5%-9% | 2-6 days | $1M | Europe | Confirmed, Transferable |
| Deutsche Bank Germany | DEUTDEFF | EU credibility, SWIFT efficiency | High compliance costs | 0.5%-8% | 2-7 days | $1M | Europe | Confirmed, Revolving |
| ABSA Bank South Africa | ABSAZAJJ | Strong African presence, reliable | Limited EU/US acceptance | 0.5%-7% | 3-6 days | $250K | Africa | Confirmed, Performance |
| Access Bank Nigeria | ABNGNGLA | Fast processing, SME-friendly | Limited global visibility | 0.5%-7% | 2-5 days | $250K | Africa | Confirmed, Commercial |
| Exim Bank Tanzania | EXTNTZTZ | Africa-based trade support | Slower validation | 0.5%-7% | 2-6 days | $250K | Africa | Confirmed, Revolving |
| MauBank Mauritius | MPCBMUMU | Offshore-friendly, flexible structures | Limited global access | 0.5%-6% | 2-5 days | $250K | Offshore | Confirmed, Transferable |
| HSBC London | HSBCCLHH | Global network, fast confirmations | Higher fees | 0.5%-10% | 1-5 days | $1M | Europe | Confirmed, Transferable |
| ICBC China | ICBCCNBB | Large-scale trade finance, strong Asia network | Less flexible for small deals | 0.5%-7% | 2-6 days | $1M | Asia | Confirmed, Transferable |
| JP Morgan Chase USA | CHASUS33 | Strong US/Global presence | Higher compliance | 0.5%-9% | 2-6 days | $1M | Global | Confirmed, Performance |
| Citibank USA | CITIUS33 | Reliable international network | Strict documentation | 0.5%-8% | 2-6 days | $1M | Global | Confirmed, Transferable |
| DBS Singapore | DBSSSGSG | ASEAN trade expertise, fast processing | Limited EU presence | 0.5%-6% | 2-5 days | $500K | Asia | Confirmed, Commercial |
| Standard Bank South Africa | SBZAZAJJ | Strong local support | Limited international recognition | 0.5%-7% | 3-6 days | $250K | Africa | Confirmed, Transferable |
| OCBC Singapore | OCBCSGSG | ASEAN & global trade friendly | Moderate fees | 0.5%-6% | 2-5 days | $500K | Asia | Confirmed, Commercial |
| Rabobank Netherlands | RABONL2U | EU trade support, reliable | Less flexible for SMEs | 0.5%-7% | 2-6 days | $1M | Europe | Confirmed, Revolving |
| ING Netherlands | INGBNL2A | Trusted European bank | Documentation-heavy | 0.5%-8% | 2-7 days | $1M | Europe | Confirmed, Transferable |
| Commerzbank Germany | COBADEFF | Reliable EU confirmations | High compliance | 0.5%-7% | 2-6 days | $1M | Europe | Confirmed, Transferable |
| NatWest UK | NWBKGB2L | UK presence, reliable confirmations | Limited Asia support | 0.5%-9% | 2-6 days | $1M | Europe | Confirmed, Transferable |
| Banco Santander Spain | BSCHESMM | EU & Latin America trade support | Documentation-intensive | 0.5%-8% | 2-6 days | $1M | Europe/LatAm | Confirmed, Revolving |
| ANZ Australia | ANZBAU3M | Strong in Oceania trade | Limited EU/US presence | 0.5%-7% | 2-5 days | $500K | Oceania | Confirmed, Transferable |
| Commonwealth Bank Australia | CTBAAU2S | Reliable in Asia-Pacific | Moderate global fees | 0.5%-7% | 2-5 days | $500K | Oceania | Confirmed, Commercial |
| U.S. Bank USA | USBKUS44 | Strong US presence | Limited Asia coverage | 0.5%-9% | 2-6 days | $1M | Global | Confirmed, Performance |
| KfW Germany | KFWDEFF | Government-backed, reliable | Strict approval process | 0.5%-7% | 3-7 days | $1M | Europe | Confirmed, Transferable |
| Bank of Tokyo-Mitsubishi UFJ | BOTKJPJT | Strong Japan trade network | Less flexible for small exporters | 0.5%-7% | 2-6 days | $500K | Asia | Confirmed, Transferable |
| RBC Royal Bank Canada | ROYCCAT2 | Reliable North America & Global | Documentation-heavy | 0.5%-8% | 2-6 days | $500K | Americas | Confirmed, Commercial |
| Scotiabank Canada | NOSCCATT | Global trade coverage | Higher fees | 0.5%-9% | 2-6 days | $500K | Americas | Confirmed, Transferable |
| Banco do Brasil | BRASBRRJBHE | Strong Latin America presence | Limited EU/Asia support | 0.5%-7% | 2-6 days | $250K | LatAm | Confirmed, Performance |
| Itau Unibanco Brazil | ITAUBRSP | Reliable LatAm confirmations | Documentation-intensive | 0.5%-7% | 2-6 days | $250K | LatAm | Confirmed, Transferable |
| Banco Santander Mexico | BSCHMXMM | Latin America trade expertise | Moderate fees | 0.5%-8% | 2-6 days | $250K | LatAm | Confirmed, Commercial |
| Bank of Africa Morocco | BOAMMA2X | African trade support | Limited global reach | 0.5%-7% | 3-6 days | $250K | Africa | Confirmed, Transferable |
| Attijariwafa Bank Morocco | ATWAMAMC | Reliable local confirmations | Limited international exposure | 0.5%-7% | 3-6 days | $250K | Africa | Confirmed, Commercial |
| Bank Al Maghrib | BAMAMAMC | Government-backed security | Documentation-heavy | 0.5%-7% | 3-6 days | $500K | Africa | Confirmed, Transferable |
📩 Other banks available upon request depending on region and transaction size.
📢 All Confirmed LCs comply with ICC UCP 600 and ISP98 regulations.