Month: 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.
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.
LOI Model
Letter of Intention (L.O.I.) for irrevocable purchase order
Date:…………………………..
We the undersigned (NAME OF BUYER OR COMPANY) hereby state and represent that it is our
corporate intention to purchase the commodity / product ………………. in the quantity
and for the price as specified in the terms and conditions as stated below. This representation is made with full corporate
authority and also responsibility of the above stated buyer.
Commodity / Product:
Origin:
Specifications:
Quantity:
Packaging:
Delivery Size And Schedule:
Mode of payment:
FOB & C&F target price:
Destination Port Discharge Rate Per Day:
Inspection:
Guarantee:
Documents:
Buyer’s Information
Company Name
Corporate Address:
City
Zip / Postal Code
Country:
Company phone
Company Fax:
E-Mail
Legal Representative:
Name / Title:
Buyer’s Bank Information
Bank Name
Address:
City
Zip / Postal Code
Country:
Bank phone
Bank Fax:
E-Mail
Bank Telex
Swift Code:
Bank Officer’s Name/ Title/ Direct phone & Fax:
Account Name/Number:
Confirming bank coordinates (if any):
Banks name
address:
City
zip / postal code
country:
Int’l trade dept. Tel & Fax:
Bank officer’s name/ title/ direct phone & fax:
We understand that any and all offers 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.
Buyer’s full name & company seal ___________
Position:
___________________________________
Signature and typed full name.
Letter of Intent (LOI)
Letter of Intent or Letter of Intent (LOI).
A very simple and quick definition of a Letter of Intent to Purchase is to describe in detail the “intention” of execution of one corporation over the other. Whether for the purchase negotiation or any other type of operational alliance between the parties.
In International Trade, many say that this is exactly how a pre-contract is made, that is, through a Letter of Intent (LOI); and that the parties negotiate their interests until they reach an agreement, until they reach consensus.
The question we ask you, reader, is as follows:
Will it give you time and condition to reach a consensus once the “intentions” have already been demonstrated?
For this reason, the interested Group or Person who presents the Letter of Intent (LOI) must not forget, as mentioned in the first paragraph, that this document reports the intention in detail.
It turns out that with our years of experience negotiating companies, we have seen that many interested parties who present a Letter of Intent to businesses, present a document punctuating all the interests to sign the purchase intention, and as a guarantee in order to honor the offer, they leave as check deposit 2% to 10% of the amount of interest in the purchase in order to initiate the Due Diligence or Audit process.
If the company is not the one presented in the reports submitted by the Seller or by the company responsible for the intermediation, the Buyer has the right to opt out of the purchase and receives the check left with the company responsible for the intermediation.
If the buyer is a curious or competitor and at some point, without just cause, give up the process, but already in possession of confidential documents, this amount is passed on to the Seller as a fine and the Letter of Intent loses its value for non-compliance with the buyer’s duties.
This letter has the main intention of ensuring both involved in the process, in addition to conducting in a safe and professional manner the entire process of a sale or merger of a company.