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| Locating Business Partners Worldwide |
| Where Global Trading Begins |
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| Questions and Answers |
#2Question:
What is the best form of DLC?
Answer:
The best form of DLC issuance are confirmed and irrevocable. The CIDLC is guaranteed by the issuing
bank and not the buyer. In other words the bank is saying to the supplier "we don't care what the end
buyer says, you the seller have met the condition of the CIDLC, we the bank will guarantee payment for
the goods ordered".
#1-Question:
Help me understand the real meaning of LOI and ICPO?
Answer:
Flawed Terms for Intermediary
LOI: This term is used out on the Internet by inexperience traders as a “Letter of Intent” which is
incorrect. LOI mean “Letter of Indemnity.”
Inexperience “intermediary seller” who is claiming to be the supplier will ask for a “Letter of Intent” to
purchase goods. You as an intermediary can not give a letter of intent to buy goods as your intentions
are not to buy goods but to sell the "Title" of the goods. So your letter of intent to buy goods would be a
lie. Giving a Letter of Intent only means “Yes I intent to buy the goods but I can change my mind
anytime. A letter of Intent is not a binding contract. The Letter of Intent is a total waste of time on a
worthless piece of paper. An intermediary can only give to the supplier an “Offer” which is to SELL the
Title of the suppliers goods.
ICPO: This term mean Irrevocable Corporate Purchase Offer. This term will not work for the
intermediary. An ICPO may work for the end buyer to the supplier dealing with each other but not for an
intermediary. An intermediary works with different applications.
Once again an intermediary can not “irrevocably offer to purchase” the goods when they are not
purchasing. They are offering to sell the “Title” to the said goods, not purchase and take possession of
goods. If any intermediary offers you an ICPO you know they are inexperience or trying to scam you.
Only the end buyer can offer such a document.
The intermediary should first ask the supplier for a “RFQ” (Request for Quote) not issue a (LOI). The
next document is an “Offer” for you as a “buyer/seller intermediary” to consider from the supplier (“Offer
to Sell”) Not (ICPO). This is all that is needed (Quote, Offer)
Not understanding the proper procedures and documents for an intermediary one of two things will
happen. 1. The deal will collapse, and/or 2. You as an intermediary will be circumvented. LEARN,
STUDY and UNDERSTAND.
Only sometimes these flawed terms and documents will work between an end buyer and a real supplier.
Not very often but sometimes, as anything can be imply between endbuyer and supplier. For the
intermediary these terms and documents will NEVER work.
In the International Trading business the only thing needed is a “Quote” “Offer” “Contract” “Payments”
and “Delivery of goods”.
What is the best form of DLC?
Answer:
The best form of DLC issuance are confirmed and irrevocable. The CIDLC is guaranteed by the issuing
bank and not the buyer. In other words the bank is saying to the supplier "we don't care what the end
buyer says, you the seller have met the condition of the CIDLC, we the bank will guarantee payment for
the goods ordered".
#1-Question:
Help me understand the real meaning of LOI and ICPO?
Answer:
Flawed Terms for Intermediary
LOI: This term is used out on the Internet by inexperience traders as a “Letter of Intent” which is
incorrect. LOI mean “Letter of Indemnity.”
Inexperience “intermediary seller” who is claiming to be the supplier will ask for a “Letter of Intent” to
purchase goods. You as an intermediary can not give a letter of intent to buy goods as your intentions
are not to buy goods but to sell the "Title" of the goods. So your letter of intent to buy goods would be a
lie. Giving a Letter of Intent only means “Yes I intent to buy the goods but I can change my mind
anytime. A letter of Intent is not a binding contract. The Letter of Intent is a total waste of time on a
worthless piece of paper. An intermediary can only give to the supplier an “Offer” which is to SELL the
Title of the suppliers goods.
ICPO: This term mean Irrevocable Corporate Purchase Offer. This term will not work for the
intermediary. An ICPO may work for the end buyer to the supplier dealing with each other but not for an
intermediary. An intermediary works with different applications.
Once again an intermediary can not “irrevocably offer to purchase” the goods when they are not
purchasing. They are offering to sell the “Title” to the said goods, not purchase and take possession of
goods. If any intermediary offers you an ICPO you know they are inexperience or trying to scam you.
Only the end buyer can offer such a document.
The intermediary should first ask the supplier for a “RFQ” (Request for Quote) not issue a (LOI). The
next document is an “Offer” for you as a “buyer/seller intermediary” to consider from the supplier (“Offer
to Sell”) Not (ICPO). This is all that is needed (Quote, Offer)
Not understanding the proper procedures and documents for an intermediary one of two things will
happen. 1. The deal will collapse, and/or 2. You as an intermediary will be circumvented. LEARN,
STUDY and UNDERSTAND.
Only sometimes these flawed terms and documents will work between an end buyer and a real supplier.
Not very often but sometimes, as anything can be imply between endbuyer and supplier. For the
intermediary these terms and documents will NEVER work.
In the International Trading business the only thing needed is a “Quote” “Offer” “Contract” “Payments”
and “Delivery of goods”.
Every industry and every country has their own standards and different rules and regulation that
govern trading in their jurisdiction. Buyers, Sellers, Brokers, Intermediaries all need to educate
themselves in the proper legal procedures for their industry and location.
In any business, knowledge is power. In the international trading business, knowledge is survival. Not
knowing the proper procedures, you will not survive and you will never close a deal.
You may use our Contact Us page for question or comment..... Your education starts here.
The answers provided here is a free service and will remain free until further notice.
govern trading in their jurisdiction. Buyers, Sellers, Brokers, Intermediaries all need to educate
themselves in the proper legal procedures for their industry and location.
In any business, knowledge is power. In the international trading business, knowledge is survival. Not
knowing the proper procedures, you will not survive and you will never close a deal.
You may use our Contact Us page for question or comment..... Your education starts here.
The answers provided here is a free service and will remain free until further notice.
Please use our contact page for any question regarding International Trading.
Questions will be answered within 2 business days.
(All questions of importance and value will be added to our Question & Answer page.)
Questions will be answered within 2 business days.
(All questions of importance and value will be added to our Question & Answer page.)