Staff Answer
Jul 16, 2020 - 04:54 AM
Hi,
Please allow me the explain concept of SCO and FCO.
SCO and FCO stand for Soft Corporate Offer and Full Corporate Offer respectively. These are offers from a seller expressing product specifications as well as the terms and conditions of the transaction. It is usually issued on the company’s letterhead. The difference between FCO and SCO is:
An FCO is not “full” without being addressed to the name of a specific party representing a buyer.
An SCO is addressed to the buyer in general but not addressed to anyone specific.
Likewise, it furnishes a prospective buyer with enough understanding of a seller's modus operandi. It gives room to the buyer for negotiation as a buyer might request an alteration of terms and conditions. Generally, SCO is preferred in the import/export business involving commodity sales.
Moreover, these offers show the seller's ability and preparedness for a business transaction with an end buyer. It likewise expresses the details of the products offered whether for export or domestic transactions.
These offers curtail information such as:
Transaction procedures are one of the most essential parts of SCO/FCO. They make a step-by-step guide on how the transaction will take place.
Check the sample:
FCO sample
SCO sample
------------------------------
Letter of credit: A letter of credit is a payment term used for international sales transactions. It's basically a mechanism, which allows importer or buyer to offer secure terms of payment to exporters or sellers in which a bank (or more than one bank) gets involved. A letter of credit is a document that guarantees the buyer’s payment to the sellers. It is issued by a bank and ensures the timely and full payment to the seller. If the buyer is unable to make such a payment, the bank covers the full or the remaining amount on behalf of the buyer. A letter of credit is issued against a pledge of securities or cash. Banks typically collect a fee, ie, a percentage of the size/amount of the letter of credit.
I hope this helps.
Thanks and regards,
go4WorldBusiness.com Team
Please allow me the explain concept of SCO and FCO.
SCO and FCO stand for Soft Corporate Offer and Full Corporate Offer respectively. These are offers from a seller expressing product specifications as well as the terms and conditions of the transaction. It is usually issued on the company’s letterhead. The difference between FCO and SCO is:
An FCO is not “full” without being addressed to the name of a specific party representing a buyer.
An SCO is addressed to the buyer in general but not addressed to anyone specific.
Likewise, it furnishes a prospective buyer with enough understanding of a seller's modus operandi. It gives room to the buyer for negotiation as a buyer might request an alteration of terms and conditions. Generally, SCO is preferred in the import/export business involving commodity sales.
Moreover, these offers show the seller's ability and preparedness for a business transaction with an end buyer. It likewise expresses the details of the products offered whether for export or domestic transactions.
These offers curtail information such as:
- Name of commodity
- Quantity
- Discharge port and type of shipment
- Price
- Origin
- Type of payment accepted
- Procedure to purchase the product, and more
Transaction procedures are one of the most essential parts of SCO/FCO. They make a step-by-step guide on how the transaction will take place.
Check the sample:
FCO sample
SCO sample
------------------------------
Letter of credit: A letter of credit is a payment term used for international sales transactions. It's basically a mechanism, which allows importer or buyer to offer secure terms of payment to exporters or sellers in which a bank (or more than one bank) gets involved. A letter of credit is a document that guarantees the buyer’s payment to the sellers. It is issued by a bank and ensures the timely and full payment to the seller. If the buyer is unable to make such a payment, the bank covers the full or the remaining amount on behalf of the buyer. A letter of credit is issued against a pledge of securities or cash. Banks typically collect a fee, ie, a percentage of the size/amount of the letter of credit.
I hope this helps.
Thanks and regards,
go4WorldBusiness.com Team
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