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.