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Solvency Confirmation Letter
"Need a Solvency Confirmation Letter for our Singapore-based manufacturing company to submit to DBS Bank for a new credit facility application, confirming our ability to service debts for the next 12 months from March 2025."
1. Letter Header: Company letterhead, date, reference number, and addressee details
2. Declaration of Authority: Statement of authority to make the declaration (e.g., director, authorized officer)
3. Company Details: Full legal name, registration number, and registered address
4. Solvency Statement: Clear declaration of company's solvency status including both cash flow and balance sheet tests
5. Financial Position: Brief overview of current financial position and ability to pay debts
6. Signature Block: Authorized signatory details and signature
1. Additional Financial Details: Detailed financial metrics when required by recipient - used when specifically requested or for regulated entities
2. Third Party Confirmation: Confirmation from auditors or accountants - used when external verification is required
3. Group Structure Reference: Information about parent/subsidiary relationships - used for companies within a group structure
1. Financial Statements: Recent balance sheet and profit/loss statements
2. Board Resolution: Copy of board resolution authorizing the solvency declaration
3. Auditor's Report: Independent auditor's report confirming financial position
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