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How a sugar deal works
Our standard 14-step procedure, in four stages. No money moves before the bank instrument is in place, and payment is against the Bill of Lading.
Stage 1: Offer
- 01Buyer issues LOILetter of Intent with product, quantity and destination port.
- 02Seller issues Corporate OfferFormal offer with price, specs and terms.
- 03Buyer issues ICPOIrrevocable Corporate Purchase Order.
Stage 2: Contract
- 04Seller issues SPA draftSales & Purchase Agreement for review.
- 05SPA signed & stampedBuyer and seller exchange the signed, stamped SPA.
- 06Seller issues Proforma InvoicePI issued per the SPA.
- 07Buyer returns PI signed & stampedBuyer countersigns the Proforma Invoice.
Stage 3: Bank instrument
- 08Buyer issues guarantee draftDraft DLC or SBLC sent for review.
- 09Seller's bank confirms the draftWording agreed bank-to-bank.
- 10Buyer's bank issues the instrumentIssued and SWIFT-transmitted to the seller's bank.
Stage 4: Loading & payment
- 11Buyer invited to follow loadingBuyer may follow the loading at the Brazilian port.
- 12Loading completed, vessel sailsSGS (or equivalent) inspection at loading.
- 13B/L issued, buyer pays against B/LPayment only against the Bill of Lading.
- 14Next shipments under the same guaranteeRepeat monthly shipments continue under one instrument.
Payment terms
Confirmed DLC or SBLC. Payment only against the Bill of Lading. Repeat monthly shipments continue under one instrument.
Inspection
SGS (or equivalent) quality and quantity inspection at the loading port. Buyers may follow the loading in Brazil.
No upfront fees
No advance payments, registration fees or “processing” charges. Ever. Read our guide: SBLC vs DLC for Brazilian sugar.