A confirming house is a specialised UK agency that purchases and arranges the

export An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ...

of goods on the behalf of overseas buyers. They finance the movement of goods into the country by offering short-term credit to importers and guaranteeing, or confirming, payment to the suppliers in the suppliers own domestic currency. The confirming house usually negotiates the price with the suppliers, ships, insures and provides information on the goods on the overseas buyers' behalf. If the overseas buyer is unable to pay for the goods the suppliers are liable to refund the confirming house. Most confirming houses have overseas offices that assist the supplier in assessing the

creditworthiness A credit risk is risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased ...

of the buyer ex-ante.

References

*{{cite book, author=Bruno Zeller, title=International Commercial Law for Business, url=https://books.google.com/books?id=iDaHKAgj_JsC&pg=PA155, date=January 1999, publisher=Federation Press, isbn=978-1-86287-323-0, pages=155– Export