# What Is a Bank Confirmation Letter (BCL)? How to Get One

![Bank Confirmation Letter (BCL)](https://www.investopedia.com/thmb/C1f2GaBGwRwD4wYW-OGYz-uHftw=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/bank_confirmation_letter.asp-final-ff01f16aab3540eca23ea7e798792eab.png)

*— Investopedia / Theresa Chiechi*

## What Is a Bank Confirmation Letter (BCL)?

A bank confirmation letter (BCL) is a formal statement issued by a bank confirming the availability of a loan or [line of credit](https://www.investopedia.com/terms/l/lineofcredit.asp) for a borrower, which could be an individual, company, or organization. This letter serves as assurance to third parties, such as sellers or partners, that the borrower has access to a specified amount of financial resources to complete transactions or projects.

### Key Takeaways

*   A Bank Confirmation Letter (BCL) verifies the existence of a loan or line of credit from a bank, assuring third parties like sellers of goods about a borrower's financial capability.
*   BCLs are not transferable to different transactions and specifically affirm resources for a particular deal, requiring new letters for new purchases.
*   They offer comfort in deals, such as business transactions or property purchases, by confirming the borrower's access to necessary financial resources, but they do not guarantee payment.
*   To obtain a BCL, clients should contact their bank, which will issue the letter with appropriate signatures upon request.

## Understanding the Function of a Bank Confirmation Letter (BCL)

A bank confirmation letter assures a third party, like a seller, that the borrower can access enough financial resources to complete a transaction, such as buying goods. The confirmation letter, also called a [comfort letter](https://www.investopedia.com/terms/c/comfort_letter.asp), doesn't guarantee payment; it only assures the borrower's ability to pay.

Bank confirmation letters typically require the signature of representatives of the bank or the [financial institution](https://www.investopedia.com/terms/f/financialinstitution.asp) who are authorized to issue such correspondence.

A confirmation letter is specific to a single transaction or project and cannot be used for another. If the customer chooses a different deal or purchase, they generally need a new confirmation letter.

For instance, if a home buyer chooses a different house from the one in the BCL, they will need a new letter. Regulations differ by country on whether a confirmation letter must detail the purpose of the loan or credit line.

## Key Applications of a Bank Confirmation Letter

Bank confirmation letters are often prepared for business customers to confirm a specific line of credit. The letters often serve to reassure sellers of a large number of goods.

They may also be issued to a company entering a [joint venture](https://www.investopedia.com/terms/j/jointventure.asp) with another company. While the letter doesn't guarantee payment, it assures a high likelihood of the company receiving payment from the bank's customer.

> **Important**
>
> A bank confirmation letter assures all parties in a transaction that the borrower has the financial resources to complete it.

Individuals often use a bank confirmation letter when buying a home or land. The letter confirms to a seller or realtor that the buyer is approved for a [mortgage](https://www.investopedia.com/terms/m/mortgage.asp) up to a certain amount.

The letter is not a commitment to buy the property; it simply reassures that the customer can access funds for the purchase. Often, a buyer cannot close on a property without having a bank confirmation letter.  

## 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.