How to Write a Ready, Willing & Able (RWA) Letter

Follow these steps to draft a Ready, Willing & Able (RWA) Letter that survives counterparty review, bank scrutiny and, if needed, ICC arbitration. Grab the free Ready, Willing & Able (RWA) Letter template at the end.

Step-by-step

1. Bank letterhead
RWA is issued by the buyer's bank confirming it is ready to open the LC or SBLC on behalf of the buyer.
2. Transaction reference
Commodity, volume, seller, delivery period and LC amount.
3. Instrument type
MT700 irrevocable LC at sight, or SBLC under URDG 758.
4. Bank commitment
Bank states it is ready, willing and able (RWA) to open the instrument subject to standard KYC and SPA.
5. Validity
10-30 banking days is standard.

Common pitfalls to avoid

Leaving placeholder text like [ ] or {seller name} in the executed copy.
Missing signature date, or signing outside the validity window quoted on the document.
Referencing Incoterms without the year - always cite 'Incoterms 2020'.
Omitting the arbitration seat and governing law - defaults vary by country.

Free template

Free Ready, Willing & Able (RWA) Letter Template

Free RWA letter template in Word and PDF. Bank-issued Ready, Willing and Able confirmation for commodity trades — MT700 LC or SBLC MT760 issuance commitment.

Get the template

FAQ

How is RWA stronger than POF?

RWA says the bank is ready to open the instrument. POF only says the funds exist.

Do banks charge for RWA?

Yes, typically a small handling fee plus internal credit approval time. Budget 3-5 banking days.

Other how-to guides

How to Write a Sales & Purchase Agreement (SPA)How to Write a Letter of Intent (LOI)How to Write a Irrevocable Corporate Purchase Order (ICPO)How to Write a Full Corporate Offer (FCO)How to Write a Soft Corporate Offer (SCO)How to Write a Non-Disclosure Agreement (NDA)How to Write a NCNDA (Non-Circumvention, Non-Disclosure)How to Write a IMFPA (Irrevocable Master Fee Protection)