Bank Comfort Letter

From Open Risk Manual

Definition

Bank Comfort Letter. It is a letter issued from the buyer's financial institution to the vendor. This letter states that the buyer has sufficient funds to cover the cost of the order. A financial institution comfort letter is one of the first pieces of documentation that a prospective buyer must provide toa vendor in order to negotiate a deal. It is not an agreement to pay the vendor anything, nor does it make the financial institution liable in any way.

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