Creditors Balance Confirmation Letter Format

What is a creditor’s balance letter?

It is a letter that an institution or an individual in debt writes to confirm the balance they owe to the creditor.

The creditor is the person that gives the money and the debtor is the person who receives the money and owes it to the creditor. For example, if you lend money to your friend, you are the creditor and your friend is the debtor.

When is a credit balance letter required?

At any time, the creditor may request from the debtor to confirm the credit amount that they have for one of the following reasons:
  • The creditor does know not their credit amount
  • The creditor wants to reconcile their own books
  • The creditor wants to share their credit balance with a third party and require a confirmation letter from the debtor.

You may already be familiar with the creditor balance letter. Your bank statement, where the bank (the debtor who has your money) confirms your account’s balance (the credit that you have deposited in the bank) is a form of credit letter.

How to write a credit balance confirmation letter?

  • Mention the creditors name the referenced the associated account number.
  • Write the amount in number and words.
  • Mention the date of the reported balance which could be different from the letter date.
  • Clear out liabilities and responsibilities.

Sample letter template:

Bank Name

To whom it may concern:

We hereby confirm that [Mr. John Smith], holder of account number 123456789 at [Bank Name], has a credit of [10,000 USD] (Ten Thousand USD Only) as of [5 June 2019].

This letter was provided upon [Mr. John]’s request with no liability to the bank what so ever.


Creditors Balance Confirmation Letter Format