What is a bank confirmation?

Bank escort is a document that confirms that the bank will honor any obligation the bank the customer carries out with regard to the transaction involving payment issued by the beneficiary. Confirmation can be structured in more than one form, and the acceptance of the banker and the time proposal is the most common. The purpose of this type of document is to provide the beneficiary of the payment, usually referred to as the counterparty, with a certain type of warranty that the payment will be offered for the goods or services that the customer buying.

Banks are often used when buyers and sellers do not have a previous working relationship. Since the issuing bank provides certainty that the amount given in the document will be offered to the Seller, this helps to reduce the risk that is taken with new and relatively unknown buyers. Although this approach can be used in some domestic situations, the bank accompaniment is more often used in goods or services are purchased from an international seller. The result is that aboutThe parties have the opportunity to work together to complete the order as quickly as possible, without worrying about when and whether the payment for the goods delivered will be received.

When the Bank's accompaniment is structured as the acceptance of a banker, it is often considered comparable to the bank warranty. This is because the issuing institutions declare the receiving institution that the amount of the payment referred to in the document will be delivered in accordance with the terms and conditions of the agreed seller. Using this process, the seller can freely send the order and be full of sure that the order will be paid out in time. The Buyer, in turn, knows that the funds will be deducted from his account or credit line according to the agreed terms and conditions and may not be a CONOMET contract to secure the payment later.

Another kind of bank accompaniment is the stamp, which is located on the back of the check. The stamp means that the receiving bank has accepted and processed a check for payment inydránní bank. In this request, the bank stamp on the back of the inspections helps create a trace of the document between the time when the check is deposited in the bank account, and when this check deletes the bank account of the issuer that can be followed if any problem and proper sending the amount were sent later.