What Is Bank Comfort Letter And How It Can Be Used?
Many of us would have not heard about bank comfort letter, but not everyone knows how to use it. This comfort letter also known as proof of funds is mostly used by the individuals who are running the business. It is used to assure the vendor or your business partner that you can complete the deal. There are many banks that offer this service so that many people who are running a business can use it to improve their business. So, what is a comfort letter ? It is the letter that is issued by the bank on behalf of the client assuring that they have sufficient funds to complete the business deal as agreed. It is mostly used where the huge amount is involved in the deal. The bank assures for the amount that it will complete the business deal when the client is unable to fulfill the payment. Facts to be known about the bank comfort letter : Usually, the bank comfort letter will be structured in such a way that there are no unplanned legal formalities and unnecessary risks are added to it. T