Bank Comfort Letter Template (UK)

Say plainly what the letter is not

This template states directly that the letter is a statement of the client's standing and relationship with the bank, not a guarantee of payment, not a letter of credit, and not a legally binding commitment by the bank to pay any amount on the client's behalf.

Use UK account identifiers

UK bank accounts are identified by sort code and account number, not a US-style routing number — using the right identifiers avoids a letter that reads like a template that wasn't actually adapted for a UK-authorised bank.

Name the transaction, amount and currency, and give it an expiry

A comfort letter with no reference to a specific transaction or amount is vague in a way that helps no one. Naming the transaction, amount and currency, and setting a validity period — commonly 30 to 90 days — makes clear the letter speaks only to the client's standing as of the date it was issued, not indefinitely.

Add a verification note

Comfort letters and similar bank correspondence are a known vector for financial-instrument fraud. A brief note telling the recipient how to verify the letter's authenticity directly with the issuing bank — using contact details obtained independently, not from the letter itself — is a practical safeguard.

Understand the situations this letter actually fits

Comfort letters are used across a range of UK transactions where one party wants a bank's informal view of a counterparty's standing before committing: supporting a tender or contract bid, reassuring a landlord before a commercial lease, backing an application for a business credit line, or accompanying a trade transaction where the counterparty wants some assurance beyond the client's own representations.

Because the letter is deliberately non-binding, it is not a substitute for a bank guarantee or documentary letter of credit in situations where the recipient actually needs a binding payment commitment — those require a different, formal instrument, and an FCA-authorised bank should not issue a comfort letter to paper over a request that really calls for one.

Only state what the bank can actually confirm

A comfort letter should reflect the bank's own records and its genuine assessment of the relationship, not a favour extended beyond what the file supports. If the account has been open only briefly, or the relationship has had irregularities, the letter should say what's actually true rather than a generic assurance the file doesn't support — an inflated comfort letter creates real reputational and potential legal exposure for the issuing bank.

Section-by-section guide

Bank and account identification

Identifies the issuing bank and the client's account using UK sort code and account number.

Standing statement

Confirms the client's relationship with the bank and general good standing.

Transaction reference and amount

Ties the letter to a specific transaction, amount and currency.

Non-binding statement

States explicitly that the letter is not a guarantee, letter of credit, or binding payment commitment.

Validity period

Sets an expiry date after which the letter should not be relied upon.

Verification note

Tells the recipient how to verify the letter's authenticity directly with the bank.

How to complete the letter

1. Identify the client and account. Add the client's name, sort code, account number and length of relationship.
2. Reference the transaction. Name the specific transaction, amount and currency the letter relates to.
3. Set a validity period. Add an expiry date after which the letter should not be relied upon.
4. Add contact details. Provide a direct verification contact at the issuing bank.

Frequently asked questions