A comfort letter is a non-binding document issued by a bank to its client stating that the bank is willing to support the client\’s application for an SBLC. The comfort letter will typically include information such as:
- The name of the client
- The amount of the SBLC that the client is requesting
- The purpose of the SBLC
- The bank\’s relationship with the client
- The bank\’s assessment of the client\’s creditworthiness
- While a comfort letter is not a guarantee that the client will be able to obtain an SBLC, it can be helpful in demonstrating to the issuing bank that the client has the support of a financial institution.
It is important to note that comfort letters are not regulated by any banking authority and therefore there is no standard format or content. The specific language and content of a comfort letter will vary depending on the bank and the client\’s specific circumstances.