No money moves before the bank instrument is in place. Payment is against the Bill of Lading.
- 01
Buyer issues LOILetter of Intent with product, quantity and destination port.
- 02
Seller issues Corporate OfferFormal offer with price, specs and terms.
- 03
Buyer issues ICPOIrrevocable Corporate Purchase Order.
- 04
Seller issues SPA draftSales & Purchase Agreement for review.
- 05
SPA signed & stampedBuyer and seller exchange the signed, stamped SPA.
- 06
Seller issues Proforma InvoicePI issued per the SPA.
- 07
Buyer returns PI signed & stampedBuyer countersigns the Proforma Invoice.
- 08
Buyer issues guarantee draftDraft DLC or SBLC sent for review.
- 09
Seller's bank confirms the draftWording agreed bank-to-bank.
- 10
Buyer's bank issues the instrumentIssued and SWIFT-transmitted to the seller's bank.
- 11
Buyer invited to follow loadingBuyer may follow the loading at Santos.
- 12
Loading completed, vessel sailsSGS (or equivalent) inspection at loading.
- 13
B/L issued, buyer pays against B/LPayment only against the Bill of Lading.
- 14
Next shipments under the same guaranteeRepeat monthly shipments continue under one instrument.