A buyer is not only interested in product specifications but also, terms of trade lớn avoid running into hitches in the course of a business transaction. That is why soft/full corporate offer comes in. It helps in clarifying the terms & conditions a seller is willing khổng lồ transact business from the outset. Also, a soft corporate offer (SCO) is generally used in import/export business và most especiallycommoditysales.
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What Does Soft Corporate Offer Mean?
It is an offer from a seller stating product specifications as well as his terms & conditions of trade. It usually comes on issuing company’s letterhead but may not contain a specific recipient.
Also, it provides a prospective buyer with enough insight about a sellers modus operandi. A smart buyer may be able lớn spot red flags on an SCO và use the same to lớn his advantage – discontinue transaction. At the same time, it gives room for negotiations as a buyer can demand amendment of terms and conditions.
Furthermore, Soft corporate offer shows the seller’s capability and readiness for a business transaction with an over buyer. It also states the details offered commodity either for export or local transaction.
Other essential nội dung of a soft corporate offer includes hàng hóa name, quantity, quality, payment method, price và many more.
Transaction procedures is another essential part of a soft corporate offer. It’s the step-by-step guide on how the transaction will flow from inception to the end. A seller may want payment before delivery, but a sceptical buyer may opt for settlement on delivery.
A Typical Example of Soft Corporate OfferThere is no particular format for writing SCO. What matters is the provision of sufficient và understandable information about the product & attached terms và conditions.
An SCO forcrude oilmay come in the size of the one we have below:
SOFT CORPORATE OFFERWe, Rosabel Resources Limited, as Seller with full corporate & legal responsibility with our JVC partners, make this offer indicating our willingness, readiness and ability lớn supply Bonny Light
Crude Oil
OFF OPEC, SPOT/LONG CONTRACT monthly basis for 12 calendar months. The supply shall start with a trial shipment of 2Million Barrels (2m bbl), và followed by Four million barrels per months within the next one year plus extension & rollover. The supply shall be from our export bulk allocation permit License, on equity/concession per the terms and condition as hereunder set forth.
PORT OF LOADING: BONNY TERMINAL BONNY/AKWA TERMINAL VIA PORT HARCOURT SUPPLIERS:NNPC JV OPERATORS, BONNY TERMINALCONSIGNEE: lớn be advised (TBA)VESSEL: to be nominated (TBN)
PAYMENT OF PRODUCT: Shall be by confirmed SBLC VIA MT760.INSPECTORS: S.G.S or it’s equivalent
BONNY TERMINAL/AKWA TERMINAL VIA PORT HARCOURTDelivery: CIF BasisPOD: China or ant safe port in the world
Gross Discount: $7/5, Inclusive of buyer’s side commissionPrice:As published in plats crude oil market wire for The three (3) day’s consecutive publication used after discharge.Currency:United States Dollar. USD$
SPECIFICATION BONNY LIGHT CRUDE OILSpecific Gravity: 0.8459. Xem thêm: Cách Tải Phần Mềm Máy In Canon 2900 (Mới Nhất), Driver Canon 2900 Cho Windows (32
37.8 Deg C.: 3.47, min.Yield C1-C4 wt%: 2.10
1. Buyer & Seller sign and seal the Sales và Purchase Agreement (SPA). An electronically signed copy of the spa chăm sóc sức khỏe và làm đẹp is legally binding & lawfully enforceable. Both parties lodge the fully executed spa chăm sóc sức khỏe và làm đẹp with their respective banks. Furthermore, the buyer sends Seller full details of the Receiving Port of Discharge (POD) lớn include full information of harbour master, shipping agency, Inspection Company etc.
Buyer/Buying Companies must issue their detailed current/updated Client Information Sheet (CIS)/ KYC, including passport/license data page of Buyer.
2. Buyer’s paying bank (Top 50 World Prime Bank) shall issue R.W.A via swift MT199/MT799 transmission (see Annex .A.) to lớn Seller fiduciary bank(Top 50 World Prime Bank, bank of America, Sandy Springs, GA, USA) account or any Top ngân hàng in US/EUROPE, stating Buyer/Issuer readiness lớn swift SBLC (including value, duration và acceptable verbiage) via MT760 transmission within 72 banking hours upon receipt of 2% Performance Bond in the value of $2,000,000.00 (Two Million Dollars) via MT760 transmission from Seller’s nominated Bank. Buyer/Issuer ngân hàng provides carbon copy of SWIFT to Seller for immediate confirmation & authentication
3. Seller’s fiduciary bank confirms & authenticates R.W.A & within days SWIFT the 2% Performance Bond (Performance Bond Guarantee, as per Buyer/Issuer accepted verbiage) in the value of $2,000,000.00 (Two Million Dollars) via MT760 transmission to lớn Buyer/Issuer bank account.
4. Immediately within 72 banking hours upon receipt and confirmation of the validation of the 2% PB SWIFT, Buyer’s financing bank shall issue S.B.L.C via MT760 swift transmission in the value of $100,000,000.00 (One Hundred Million Dollars) lớn Seller fiduciary bank as per accepted verbiage & duration (see annexe A). Buyer’s bank provides carbon copy of SWIFT lớn Seller for immediate confirmation & authentication.
5. Within Fifteen-Twenty (15-20) banking days, Seller’s nominated vessel shall load, và Seller Secures Full Cargo Documents and Title in both Seller’s & Buyer’s name. Seller furnishes Buyer with copies of the CPA, Q88 và issues full shipping cargo documentation from NNPC to Buyer.
6. Vessel sails to Buyer’s POD. Furthermore, buyer’s POD will receive ETA updates ten (10) and five (5) days và then at forty-eight (48), twenty-four (24), and twelve (12) hours before arrival at POD. Upon arrival at Buyer’s POD, vessel announces the arrival lớn Port Authority/Navy, and buyer’s shipping agency clears vessel into the POD Anchorage.
Note: The loaded vessel will only anchor in the international waters of the POD country pending Clearance from buyer agent. Additionally, expenses; port charges, levies, security, tugging etc. That might arise as a result of a vessel coming into the POD country harbour/port/terminal/storage or waters will be borne by the Buyer. All clearing processes will be carried out by the Buyer’s Shipping Agent. If after seventy-two (72) hours upon vessel arrival và there is congestion at the port which thus causes delay, Buyer shall bear the cost of demurrage.
My customer is has agreed to pay $460 per metric Ton, He is asking for me to send him my SCO/FCO He is asking for an L/CAdd New phản hồi
Hi,Please allow me the explain concept of SCO & FCO.SCO và FCO stand for Soft Corporate Offer & Full Corporate Offer respectively. These are offers from a seller expressing sản phẩm specifications as well as the terms và conditions of the transaction. It is usually issued on the company’s letterhead. The difference between FCO and SCO is:An FCO is not “full” without being addressed khổng lồ the name of a specific các buổi tiệc nhỏ representing a buyer.An SCO is addressed khổng lồ the buyer in general but not addressed khổng lồ anyone specific.Likewise, it furnishes a prospective buyer with enough understanding of a seller"s modus operandi. It gives room to lớn the buyer for negotiation as a buyer might request an alteration of terms and conditions. Generally, SCO is preferred in the import/export business involving commodity sales.Moreover, these offers show the seller"s ability & preparedness for a business transaction with an kết thúc buyer. It likewise expresses the details of the products offered whether for export or domestic transactions.These offers curtail information such as: Name of commodity
Quantity
Discharge port & type of shipment
Price
Origin
Type of payment accepted
Procedure to lớn purchase the product, and more
Transaction procedures are one of the most essential parts of SCO/FCO. They make a step-by-step guide on how the transaction will take place.Check the sample:FCO sample
SCO sample ------------------------------Letter of credit: A letter of credit is a payment term used for international sales transactions. It"s basically a mechanism, which allows importer or buyer lớn offer secure terms of payment khổng lồ exporters or sellers in which a ngân hàng (or more than one bank) gets involved. A letter of credit is a document that guarantees the buyer’s payment to lớn the sellers. It is issued by a bank and ensures the timely và full payment to lớn the seller. If the buyer is unable khổng lồ make such a payment, the ngân hàng covers the full or the remaining amount on behalf of the buyer. A letter of credit is issued against a pledge of securities or cash. Banks typically collect a fee, ie, a percentage of the size/amount of the letter of credit.I hope this helps.Thanks and regards,go4World
Business.com Team
