About BCL and RWA
A BCL stands for a Bank Comfort Letter. It is a letter provided by the buyer’s bank to confirm that the buyer has sufficient funds to carry out the transaction. The intermediary cannot give a BCL because intermediaries do not have the money in their bank account. If you get a BCL from your end buyer and hand it over to the supplier you have just lost the deal.
They will deal directly with each other and you are out. An intermediary cannot deal with a BCL. However it may apply to a direct buyer doing business with an end Supplier on some occasion – It cannot simply be applied when intermediaries such as Buyer/Seller are involved. As to RWA…. It basically means Ready Willing and Financially Able. Like the BCL the same applies to RWA. (“Look I have the money to buy”- IT DOES NOT MEAN I WILL BUY) If an intermediary asks for a RWA or BCL from a Buyer and the Buyer gives a Genuine RWA/BCL, then the intermediary has to continue with the deal which usually means disclosing the supplier to the buyer’s side – and here is your problem -The supplier is disclosed and the buyer changes his mind, then returns to the supplier at a later time and circumvents everyone in the group. The buyer just saved himself millions of dollars.