How we work
Standard operating procedure
Every transaction follows the same eleven steps.
- 01
Full KYC
Every transaction starts with full KYC (Know Your Customer). The buyer submits its company registration documents and the identification of its authorised signatories and ultimate beneficial owners. No offer is issued until KYC has been completed and verified.
- 02
Soft offer
Once KYC has been verified, the seller issues a Soft Corporate Offer (SCO).
- 03
Purchase order
The buyer issues an Irrevocable Corporate Purchase Order (ICPO) against the SCO, stating the price, payment terms and other mutually agreed conditions. With the ICPO, the buyer allows the seller to run a soft probe on the paying account through banking channels.
- 04
Full offer
On receipt of the ICPO, the seller issues a Full Corporate Offer (FCO). The buyer returns it signed and stamped as confirmation.
- 05
Draft agreement
On receipt of the confirmed FCO, the seller issues a draft Sales and Purchase Agreement (SPA). The buyer reviews it; any changes are discussed and agreed by both parties before the agreement is signed and stamped.
- 06
Signed agreement
The buyer signs and stamps the SPA and returns it to the seller, who signs and stamps it in turn and sends it back to the buyer.
- 07
Proforma invoice
The seller issues a proforma invoice so that the draft letter of credit (LC) or standby letter of credit (SBLC) can be prepared.
- 08
LC or SBLC
Payment is secured by a letter of credit (LC) or a standby letter of credit (SBLC). The buyer sends the draft LC or SBLC to the seller for approval by the seller's bank. The instrument must be irrevocable, transferable and divisible; instruments transferred to the buyer from other companies are not accepted. The seller answers the draft with a Proof of Product (POP). Once the two banks have reconciled, the LC or SBLC becomes operative.
- 09
Loading
On receipt of the operative LC or SBLC, the seller starts loading the goods.
- 10
Shipping documents
When loading is complete, the seller's bank sends copies or scans of the shipping documents to the buyer's bank.
- 11
Payment
Under an LC, the buyer's bank releases full payment for the first shipment at the destination port immediately on receipt of the original bill of lading (B/L), the SGS certificate and the full set of shipping documents. Under an SBLC, the buyer pays by bank transfer against the same documents; if payment is not made, the seller draws on the SBLC.
Need more information?
Tell us the product, volume and destination port, and we will take it from there.