Business Protocols for buyer’s and Buyer’s Agents

We have found that purchasing large quantities of commodities can be a confusing process and so we feel that it is important to outline our Business Protocols so that the Buyer and Buyer’s Agent are fully aware of the way in which we work.  We have found that this system is the most efficient and cost and time effective way of working as it filters out time wasters leaving us with more time to work with genuine buyers and their Agents.

1      Getting a formal Soft Offer

a)     We are approached by the Buyer or the Buyers Agent regarding the purchase of a commodity.

b)     If the Buyer/Agent has a LOI (Letter Of Intent) then we are able to obtain a formal Soft Offer for the Buyer.  (We will not release personal or confidential Buyer information contained in the LOI until the Buyer accepts the Soft Offer and has signed the NCNDA and returned it to us.

c)     If the Buyer/Agent does not have a LOI, or does not wish to divulge the LOI at this initial stage of transaction, then we will forward an RFQ (Request For Quote) form for them to complete and return to us.  We will then send the RFQ to the Supplier for an Official Soft Offer.

2      From Soft Offer to Full Corporate Offer

        If the Buyer accepts the Official Soft Offer when:

a)     We will send the buyer the Suppliers NCNDA AND the Suppliers Purchase Process.

PLEASE NOTE: It is the Supplier who dictates the Purchase Process and not the Buyer and we will adhere to the Suppliers procedure only.

1. We will then ask you to send us the BCL (Bank Comfort Letter) or similar.  We will forward this on to the Supplier who will conduct a Soft Probe to ensure that the Buyer is genuine and is financially able to purchase the commodity.

c)     When the Supplier is satisfied that the Buyer is able to commit to the purchase, he will release the (FCO) Full Corporate Offer to the Intermediaries who will forward the FCO to the Buyer/Agent.

3      From Full Corporate Offer to Draft Contract/FPA (Fee Protection Agreement

1. If the Buyer is happy with the FCO they will return the FCO duly signed so that the Supplier can then release the Draft Contract/FPA via the Intermediaries.

b)     The Intermediaries will forward the Draft Contract/FPA to the Buyer who will sign and seal both documents before returning them to the Intermediaries who will in turn forward them onto the Supplier.

Further Information

NCNDA

When we send a Buyer/Agent an NCNDA we find that genuine Buyers/Agents have no issue with signing the NCNDA and returning it to us promptly. 

However, if a Buyer/Agent delays sending us the NCNDA without any legitimate reason for the delay, this often sounds a warning bell to us.  Very often agents use the quotation system just to gain contacts and prices, so that they can bypass the Intermediaries.  We are fully aware of the way in which these people work.   They cause a great deal of time wasting and we consider this ‘bad’ business practice.

Official Soft Offer

If you receive an Official Soft Offer and you wish to accept it, we advise that you are prompt in your response as Official Soft Offers are usually only valid for 5 working days. 

If you are going to accept an Official soft Offer, we recommend that you have your BCL or similar ready and waiting to send as soon as possible.