A Soft Corporate Offer (SCO) is the seller's indicative, non-binding outline of a deal: product, quantity, price basis, terms, validity. A Full Corporate Offer (FCO) is the seller's firm offer, issued after the buyer's ICPO and KYC, with the complete procedure, banking details and penalties. SCO opens the conversation; FCO is the last step before the contract.
Soft Corporate Offer (SCO)
The SCO is the seller's opening document. It is deliberately "soft": it describes what the seller can supply and on what basis, without committing the seller to a particular buyer. Everything in it is "subject to" contract, availability and the buyer's acceptance of the seller's procedure. The indicative terms on our products page are SCO-level information: quantities and gross prices that will be confirmed only once a specific buyer and shipment are on the table.
What a good SCO contains
- Seller's legal name, address and registration number, and the name of the signatory
- Product and specification, origin
- Available quantity per lift and per month, contract length
- Price basis (fixed, or a formula with the discount or premium) and the Incoterm and port
- Payment method the seller expects (DLC, SBLC, MT103)
- Inspection agency and who pays
- The procedure the seller follows, step by step
- Validity of the offer
Full Corporate Offer (FCO)
The FCO is issued after the buyer has responded with an ICPO and both sides have completed KYC. It is addressed to one buyer, it is firm for its validity period, and it is detailed enough to be turned into a contract with few changes. Accepting the FCO (counter-signing it) normally leads directly to the draft Sales and Purchase Agreement.
What the FCO adds
- Buyer's name and the ICPO reference it responds to
- Exact price for the first lift and the pricing mechanism for subsequent lifts
- Delivery schedule with dates or windows
- Seller's bank name and the instrument sequence (who sends what, and when)
- Performance bond, if offered, and its percentage
- Penalties for non-performance on either side
- Governing law and dispute resolution
- Signature with corporate authority, stamp and date
Side by side
| Aspect | SCO | FCO |
|---|---|---|
| Binding? | No, indicative | Yes, firm for its validity |
| Addressed to | The market or a prospect | One named buyer |
| Issued | Before the ICPO | After ICPO and KYC |
| Price | Indicative or formula | Firm for the first lift |
| Procedure | Outline | Complete, with banking sequence |
| Next step | Buyer's ICPO | Draft contract (SPA) |
The whole sequence
- SCO from seller.
- LOI or ICPO from buyer, with KYC documents.
- FCO from seller.
- SPA (Sales and Purchase Agreement) drafted, negotiated and signed.
- Bank instruments exchanged as the SPA states.
- POP (proof of product), loading, inspection, shipment, documents, payment.
How to read an offer
Whether soft or full, an offer tells you as much by what it omits as by what it states. Check that the seller is identifiable and its registration can be verified. Check that the price makes sense against the market benchmark, because prices far below Platts or the exchange are the single most common sign of a non-existent product. Check that the procedure asks the buyer for money or instruments only after the seller has shown something verifiable. And check that the inspection agency is named and independent.
- No legal entity, registration number or physical address on the offer.
- Prices 20 to 40 percent under the benchmark for refined fuels or sugar.
- A procedure in which the buyer must issue an instrument or pay a fee before the seller has provided proof of product through a verifiable channel.
- "Mandate" or "facilitator" language with no disclosed principal.
Structuring a purchase or a supply contract and want the instruments in the right order? Request a consultation or message us on WhatsApp at +1 941 202 4887.