Day: 25 June 2020
FCO – Full Corporate Offer
Company name _______________
Letter of Intent # _______________
FULL CORPORATE OFFER #__________________
To: _______________
Attn: _______________
We, the ___________________, hereby state and represent that we confirm with full legal and corporate responsibility under penalty of perjury that we are ready, willing and able to sell and deliver the following unencumbered commodity, as follows:
| COMMODITY | : ____________________ |
| ORIGIN | : ____________________ |
| PACKING | : ____________________ |
| QUALITY | : Export quality |
| QUANTITY | : ___________________ (________) M.T. per 20XX year. The total contractual quantity of the commodity sold and purchased under this agreement is ___________________ (________) total Metric Ton being ___________________ (________) per annum being: ___________________ (________) Metric Tons per month with a variation of plus/minus 5% (five percent) of Seller’s and Buyer’s option. This specified quantity is equivalent to 1 (one) month’s supply to be repeated for: ___________________ (________) months consecutive calendar months as referred to in Clause 4 with possible roll-overs and extensions. |
| MONTHLY DELIVERY | : ___________________ (________) M.T. |
| CONTRACT PERIOD | : ___________________ months with Roll & Extension |
| TERMS OF DELIVERY | : CIF port ___________________ |
| PRICE | : The fixed price to be USD___________________/(________) per Metric Ton |
| PAYMENT | : Irrevocable, Documentary, (non)Transferable, Divisible, Revolving Letter Of Credit, issued by Buyer’s top 25 World Bank, covering the cost of one month shipment. |
| PERFORMANCE BOND | : ____________________ |
| PROCEDURE | 1) 2) 3) |
| INSPECTION | : Seller and Buyer mutually agree that SGS or INSPECTORATE an internationally recognized first Class independent surveyor company shall be appointed at loading and/or discharge ports, to assess the quality and quantity of the cargo according to the provisions herein stated. Seller pay SGS or INSPECTORATE inspection cost at loading port. |
| CARGO SIZE | : According to Contract’s condition. The Seller shall have to arrange vessel or vessels to the loading port as per lay-can time. |
| DELIVERY DATE | : The date mutually accepted by both Seller and Buyer as the date on which the nominated international surveyor company has ascertained the quantity and quality of the product. |
| NOTES 1. All parties including consultants’ fees, will be protected by the issuance of an irrevocable fee agreement and pay order by buyer, including all rolls and extensions of any spa bearing the same parties, and original transaction code. 2. This FULL CORPORATE OFFER # ___________________ is for the exclusive benefit of the addressee only and supersedes any previous FCO. This FCO cannot be published or transferred. 3. This FULL CORPORATE OFFER # ___________________ is valid for a period of xx (xx) days, starting with the date of signature. |
For and On Behalf of
_________________________________
Yours faithfully,
_________________________________
President: Mr. ________________________
Passport No: _________________________
Date of issue: ___ ____________________, 20xx
Country of Origin: ______________________
ICPO – Irrevocable Corporate Purchase Order
Conditions :
Date: day/month/year
Ref. No:
To: whom it may concern
Through:
I …………..…………under signed, as Managing Director of (company name here) with Full Corporate and legal responsibility and authority under penalty of perjury, hereby place this Irrevocable Corporate Purchase Order (ICPO) of herewith named products according to the following terms and
COMMODITY:
ORIGIN:
SPECIFICATIONS:
QUANTITY:
PACKING:
SHIPPING TERMS:
DESTINATION PORT:
PRICE: (USD)
SHIPMENT SIZES:
INSPECTIONS:
PAYMENT TERMS:
GUARENTEE:
DOCUMENTS:
CONTRACT PERIOD:
Our Company Information:
1. Company Name:
2. Company Origin:
3. Company Registration Number in the country of origin:
4. Company Address:
Our Purchasing Representative for Above Commodity:
1. Company Name:
2. Country of Origin:
3. Company Registration Number in the Country of Origin:
5. Company Address:
Company Telephone:
Telephone Fax:
OUR BANK NAME AND ACCOUNT INFORMATION
THE NAME OF BANK:
ADDRESS OF BANK :
CITY/ZIP CODE/STATE :
BANK OFFICER’S NAME :
BANK OFFICER’S TELEPHONE & EXT :
ACCOUNT NUMBER :
ACCOUNT NAME :
ABA NUMBER :
SWIFT NUMBER :
BANK TELEPHONE NUMBER:
BANK FAX NUMBER :
BANK TELEX :
We understand that any and all offer and/or contracts are subject to successful Seller verification of funds availability. We hereby give our written permission for the Seller to conduct a soft probe of our account and that our Bank has been informed to this effect.
Signature
Person Name
Managing Director
Company name
ICPO – Irrevocable Corporate Purchase Order
Conditions :
Date: day/month/year
Ref. No:
To: whom it may concern
Through:
I …………..…………under signed, as Managing Director of (company name here) with Full Corporate and legal responsibility and authority under penalty of perjury, hereby place this Irrevocable Corporate Purchase Order (ICPO) of herewith named products according to the following terms and
COMMODITY:
ORIGIN:
SPECIFICATIONS:
QUANTITY:
PACKING:
SHIPPING TERMS:
DESTINATION PORT:
PRICE: (USD)
SHIPMENT SIZES:
INSPECTIONS:
PAYMENT TERMS:
GUARENTEE:
DOCUMENTS:
CONTRACT PERIOD:
Our Company Information:
1. Company Name:
2. Company Origin:
3. Company Registration Number in the country of origin:
4. Company Address:
Our Purchasing Representative for Above Commodity:
1. Company Name:
2. Country of Origin:
3. Company Registration Number in the Country of Origin:
5. Company Address:
Company Telephone:
Telephone Fax:
OUR BANK NAME AND ACCOUNT INFORMATION
THE NAME OF BANK:
ADDRESS OF BANK :
CITY/ZIP CODE/STATE :
BANK OFFICER’S NAME :
BANK OFFICER’S TELEPHONE & EXT :
ACCOUNT NUMBER :
ACCOUNT NAME :
ABA NUMBER :
SWIFT NUMBER :
BANK TELEPHONE NUMBER:
BANK FAX NUMBER :
BANK TELEX :
We understand that any and all offer and/or contracts are subject to successful Seller verification of funds availability. We hereby give our written permission for the Seller to conduct a soft probe of our account and that our Bank has been informed to this effect.
Signature
Person Name
Managing Director
Company name
BCL – Bank Comfort Letter
BCL – Bank Comfort Letter
The BCL, or Bank Comfort Letter, is a document usually issued by investment banks in which the bank says the client has a good credit history, sufficient to support large transactions, or the bank says it is willing to grant loans to the client, enough to cover the value of a particular transaction.
That is, it is a vote of confidence issued by the bank, with the purpose of helping to generate trust (comfort) between the parties.
BCL is especially useful when the parties have never seen each other and when the transaction needs speed.
For example: a medium-sized trading company, located in Pakistan, wants to buy chicken from a Brazilian slaughterhouse that is represented by a broker.
If the transaction is not in a hurry, the broker will be able to access the history of the likely buyer with international credit agencies (a type of Serasa). You can also calmly check all the company documentation, etc.
However, if the deal is urgent, the broker can request a BCL from a reputable bank. If the letter arrives, the probability that the buyer will be serious will be great. In this case, it will be justifiable to invest time in doing business.
If the buyer is unable to supply the BCL, this may indicate that it is not a final buyer, but an intermediary probing the market. Or it may indicate that the buyer is unable to provide credit quickly.
Although, in today’s market, BCL can sometimes be considered a refinement, an excess. It will depend on the market profile and the situation.
Note that the BCL is just a compliment from the bank and does NOT guarantee payment. Payment will only be guaranteed after a bank guarantee (BG) or letter of credit (L / C) has been issued.
However, the issuance of guarantees can only occur after the contract is signed, which logically only happens after the negotiation is concluded.
Thus, the BCL serves to encourage the engagement of the parties, while they still do not know each other well.
When the parties already know each other, the BCL becomes unnecessary and the focus becomes the reissue of guarantees.