Terms you will meet
In the order they usually appear in a deal.
| LOI | Letter of Intent Buyer's written, usually non-binding statement of the product, quantity and terms it intends to buy. |
|---|---|
| ICPO | Irrevocable Corporate Purchase Order A buyer's purchase order. Binding only on the conditions written in it; commonly made subject to a signed SPA. |
| FCO | Full Corporate Offer Seller's written offer with product, origin, price, quantity, delivery and payment terms. |
| SPA | Sales & Purchase Agreement The contract between buyer and seller. This is the document that binds both sides. |
| NCNDA | Non-Circumvention, Non-Disclosure Agreement Protects each party's contacts and information in a deal with intermediaries. |
| IMFPA | Irrevocable Master Fee Protection Agreement Fixes the intermediaries' fees and who pays them, usually per tonne per shipment. |
| LC | Letter of Credit A bank's undertaking to pay the seller against presentation of agreed documents. |
| SBLC | Standby Letter of Credit A bank guarantee paid only if the buyer fails to pay; used on term contracts. |
| B/L | Bill of Lading Carrier's receipt and document of title for the cargo. |
| COA | Certificate of Analysis Laboratory results of the cargo against the specification. |
| CoO | Certificate of Origin Confirms the country where the goods were produced. |
| Laycan | Laydays / Cancelling The window in which the vessel must arrive to load. |
| Demurrage | Delay charge Paid when loading or discharge takes longer than the time allowed. |
| KYC | Know Your Customer Company and signatory documents exchanged to verify a counterparty. |
| POF / BCL / RWA | Proof of funds letters Bank letters about a buyer's funds. Asking for them before any offer is a warning sign. |
When to walk away
Most failed commodity deals show the same signs early. Any one of these is a reason to stop.
Money up front
Registration, “inspection” or “allocation” fees before a contract.
Bank letters first
POF, BCL or RWA demanded before any written offer.
No proof of supply
No origin, no loading port, no B/L or certificate for past cargoes.
Too good to be true
Prices far below published market levels.
No independent inspector
Refusal of SGS, BV or Intertek at loading.
Pre-payment by transfer
Insistence on TT in advance instead of LC.
Names that change
Seller entity, bank or signatory changing during the deal.
Artificial deadlines
“Allocation closes today” pressure to skip checks.
We do these checks for our buyers.
As the buyer's sourcing representative, Ankoria screens sellers before an offer reaches the buyer, keeps the buyer's documents back until the seller has proven its product, and makes sure the contract and LC are made directly between buyer and seller.
Tell us what you need to move.
Send the product, quantity, destination and timing. We reply with a clear answer within one working day.