Silent Confirmation of Letters of Credit for Exporters
Exporter holding a letter of credit you cannot fully rely on? We structure silent confirmation with confirming banks.
Start Client IntakeWho This Is For
Exporters and commodity traders who hold, or are about to receive, a letter of credit from an issuing bank or country they do not want to rely on alone. Silent confirmation fits when the buyer or the issuing bank will not request an open confirmation, but you still want a second bank's payment undertaking. Typical cases include buyers in higher-risk jurisdictions, longer usance tenors and issuing banks your own bank will not take on.
What We Do And What You Receive
We review the letter of credit, the issuing bank and the country exposure, then approach banks that can add a silent confirmation on that issuer. Where silent confirmation is not available, we compare other routes, such as an insured letter of credit, risk participation or post-acceptance discounting. You receive a written review of the credit and the issuer, a list of clauses and document requirements to fix before shipment, indicative terms from confirming banks where available, and coordination of the assignment of proceeds and presentation through to payment.
Process And What To Send
Submit the transaction through client intake.
We assess the credit, the issuer and the trade.
If it fits, we send a written proposal.
We coordinate banks, documents and presentation through to payment.
Send a copy of the letter of credit or the draft MT700, the issuing bank and country, the amount and tenor, the sales contract, the shipment schedule and your company documents for KYC.
Why FG Capital Advisors
FG Capital Advisors is an independent structured trade and commodity finance advisor. We are not a bank and do not issue instruments in our own name. We prepare the file, coordinate banks and other counterparties, and work through regulated partners where required. Every request is assessed before we accept a mandate. Where it fits our scope, we issue a written proposal that sets out the scope of work, responsibilities and commercial terms. Final terms are always set by the banks after their own diligence and credit approval.
Related Services and Guides
Start Your Client Intake
Ready to move? Send the transaction through our client intake form, choose the Trade Finance & Working Capital route and include the details listed above. We review every submission and reply in writing with next steps.
Start Client IntakeFrequently Asked Questions
What is a silent confirmation?
It is a confirmation that a bank adds at the exporter's request without the issuing bank's authorisation. The confirming bank's undertaking runs to the exporter under a separate agreement, which usually includes an assignment of the letter of credit proceeds.
Does the buyer or issuing bank need to agree?
No. Silent confirmation is arranged between the exporter and the confirming bank. The letter of credit still needs to be workable, so we check its terms and documents before any bank is approached.
Can every letter of credit be silently confirmed?
No. It depends on the issuing bank, the country, the tenor, the amount and the confirming bank's available limits. If we see no workable route, we tell you in writing.
