Document background
The Confirmed Irrevocable Letter of Credit is a critical document in international trade finance, particularly relevant when trading parties seek additional security in cross-border transactions. Used extensively in Danish and international commerce, this instrument provides a payment guarantee backed by both the issuing and confirming banks, making it especially valuable when trading with unfamiliar partners or in challenging markets. The document is governed by Danish law and follows UCP 600 guidelines, incorporating specific requirements for document presentation, payment terms, and shipping conditions. It's particularly useful when the beneficiary requires additional security beyond the issuing bank's undertaking, or when the issuing bank's country presents certain risks. The confirmation adds a second bank's commitment, typically in the beneficiary's country, providing an additional layer of payment security.
