Bank Confirmation Letter
What It Means
A Bank Confirmation Letter is a letter from a financial institution that confirms that a borrower is eligible to borrow a specific amount of money for a specific project.
Why It’s Important
When debt is involved in a business Acquisition, and it often is, it is reasonable for a Seller to seek confirmation that the Buyer has access to the funds they intend to use for the purchase. A Bank Confirmation Letter is a simple way to verify the legitimacy of a Buyer’s ability to complete the transaction.
Related Terms
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