Letters of Credit & Negotiations

Letters of Credit & Negotiations

Transaction Structuring 

Our team has extensive experience in structuring letters of credit to secure international trade transactions. We ensure that the terms and conditions are aligned with the commercial contract and protect the interests of all parties involved.

Risk Management & Mitigation

Our expertise in mitigating risks associated with letters of credit includes handling discrepancies, ensuring timely payments and navigating regulatory compliance. We provide secure and efficient transaction support to our clients.

Document Handling

We meticulously manage the preparation and presentation of all required documents. This ensures compliance with the letter of credit terms and smooth financial transactions.

Negotiation Strategies

Our skilled negotiators employ advanced techniques to facilitate transparent and mutually beneficial agreements between buyers and sellers. We focus on achieving optimal terms, pricing and contract conditions for our clients.

Conflict Resolution

With a wealth of experience in resolving disputes, our team ensures that negotiations proceed smoothly and conflicts are addressed promptly and effectively. We prioritize maintaining positive long-term relationships with all parties involved.

Compliance Assurance

We ensure that all negotiations comply with international trade laws and regulations, minimizing legal risks and promoting ethical business practices.

Requesting quotes 

For buyers, we suggest evaluating the sales procedures before requesting a quote. In this way, it will be possible to prepare your company to comply with the procedures within the agreed deadlines.

DO NOT SEND LOI – Most will be discarded when we receive them.
In order for you to be effective in your negotiation with GrainFuel Nexus, with regard to agricultural commodities, carefully follow the guidance below.

The Sugar Example 

Request a quote / Procedures:

  1. BUYER sends ICPO (Irrevocable Corporate Purchase Order)
    Complete buyer information about the issuing or confirming bank, it is essential to be a TOP 50 bank. We only accept full Bank ICPO from the recipient of the purchase, this document on PDF letterhead, complete banking and business information of the purchasing company (all information will be consulted).
  2. Seller issues FCO (Full Corporate Offer).
  3. The buyer returns the signed and stamped FCO and sends the BCL (Bank Confirmation Letter) and draft of the SBLC or LC for approval by the seller’s bank or the seller’s financial sector. The Purchaser’s ICPO together with the BCL and Draft Financial Instrument will be sent to the financier responsible for the operation to carry out Compliance. After approval by the buyer, the procedure continues as follows:
  4. Seller issues Contract Draft (SPA). After receiving the FCO approved by the buyer.
  5. The buyer returns the signed, stamped and scanned Draft Contract by e-mail and it will be considered legal and official Contract of Purchase and Sale until the copies are exchanged.
  6. The seller issues a Commercial Invoice.
  7. The buyer returns the stamped and signed Commercial Invoice.
  8. The buyer’s bank issues DLC (Documentary Letter of Credit); Sight L/C - At sight letter of credit (MT 700/760) and sends it to the seller’s bank within 15 working days. The bank instrument must be revolving, transferable or Non-Transferable to SBLC only and DLC only transferable, irrevocable, divisible, operational, renewable and confirmed by the top 50 bank, with Payment via MT 103 upon presentation of the shipping documents (B/L + SGS) by the seller at the port of origin or as agreed with Seller.
  9. After the open banking instrument, the seller’s bank sends to the buyer’s bank a PB (Performance Bond) of 2% within 12 working days in the amount of a remittance only for contract conditional on payment at origin, we will issue PoP (Proof of Product) within 15 days for any form of payment.
  10. The buyer will receive an invitation letter to accompany the shipment at the port if necessary. 
  11. In 35/45 days the ship will be loaded.
  12. Payment against the OBL and SGS shipping documents.

PAYMENT METHODS

Payment of 30% against pro forma invoice and 70% after sending shipping documents Note: Only for fractional orders in container

DLC + MT 103 | DLC with value equivalent to one month of supply and maturity of 1 year Plus 1 day, irrevocable, unconditional, transferable and divisible. Issued by the TOP 50 bank and payment for boarding the MT 103 LC – at sight, Conditional, Irrevocable, Transferable and Divisible Bank TOP 50 

Payment against NON NEGOTIABLE O/BL and SGS With Named Consignee, shipping documents, as noted above, as per the Documentary letter of credit (DLC/Sight LC). We always recommend DLC to our buyers.

Additional Notes :

  • We do not ship physical samples without exception.
  • We do not send BL or other shipping inspection certificates from previous customers for someone to review (Data Protection Act). No past performances.
  • We do not upload photos or videos to avoid infringing our suppliers’ privacy and identity.
  • It is evident that SGS is the market leader in inspection, verification, testing and certification of companies. It is recognized as a world reference in quality and integrity. For additional information, follow the website below:
    www.sgs.com