Frequently Asked Questions

Letter of Intent or Expression of Interest. A non-binding document from a buyer or seller that formally initiates the transaction process by stating interest in purchasing or selling a specified product.

Soft Corporate Offer / Full Corporate Offer. Issued by the seller, the SCO provides preliminary terms and pricing. The FCO is the binding formal offer with complete specifications, pricing, and terms.

Irrevocable Corporate Purchase Order. A formal, non-cancelable purchase commitment from the buyer, submitted in response to an FCO. Triggers the contract drafting process.

Sales & Purchase Agreement. The legally binding contract between buyer and seller detailing all terms, specifications, delivery conditions, payment terms, and obligations of both parties.

Know Your Customer / Anti-Money Laundering. Mandatory banking compliance procedures requiring identity verification, company documentation, and source-of-funds confirmation for all transaction parties.

Ultimate Beneficial Owner. The natural person(s) who ultimately own or control a company involved in the transaction. Required for KYC compliance under international banking regulations.

Proof of Funds. A bank-issued or bank-confirmed document demonstrating that the buyer has sufficient capital to complete the proposed transaction. Typically a bank statement or financial instrument.

Proof of Product. Documentation confirming the seller has the product available for sale. This includes tank storage receipts, SGS reports, or official supplier documentation.

SWIFT messaging formats used in international banking. MT799 is a free-format message confirming funds availability. MT760 is a Bank Guarantee or Standby Letter of Credit — a stronger financial commitment.

A SWIFT inter-bank wire transfer message used to initiate an international payment. In commodity trading, MT103 is the final payment instruction sent from the buyer's bank to the seller's bank upon delivery confirmation.

Société Générale de Surveillance — the world's leading inspection, verification, and certification company. In oil trading, SGS provides independent quality and quantity verification at the loading port.

A legal document issued by a carrier to a shipper, acknowledging receipt of cargo for shipment. In oil trading, it serves as a title document — ownership of the cargo transfers with the Bill of Lading.

International Commercial Terms published by the International Chamber of Commerce (ICC). They define the responsibilities of buyers and sellers in international trades — e.g., FOB (Free on Board), CIF (Cost, Insurance, Freight).