10 ITEMS AN 'ICPO' MUST HAVE

Most ICPOs you see these days are improperly put together by uninformed agents and end-buyers. We have found out that many ICPOs are not enforceable; some in most cases get trashed by seasoned Sellers who can’t afford to have their time wasted. So in order to do business with us, a Buyer MUST BE prepared, WILLING & ABLE to supply us an ICPO with certain required information in it.

 

Note also that we hold our clients’ information with utmost high regards and sensitivity, and as such we don’t float our clients’ docs around anyhow; specific docs ONLY go to specific clients depending on the match up we have between our buyers and sellers. And on any given transaction, a seller and the next closest seller to a buyer’s deal in terms are the ones that only get to see any document.

 

This list below comes from my blog page on commissions; here are the 10 Items an ICPO should have:

 

1. Product Name

 

2. Product Specifications

 

3. Price per units (e.g. per metric tonne)

 

4. Quantity in units (e.g. metric tonnes)

 

5. Port of Destination (broker should confirm that the port discharge rate is realistic)

 

6. Heading reads: IRREVOCABLE CORPORATE PURCHASE ORDER

 

7. Signed by someone in the company with authority to sign and ICPO should be notarized (publicly witnessed)

 

8. Bank information (with authorization for soft probe)

 

9. ICPO offer should have a commencement Date

 

10. Date of expiration of the offer (document might be invalid, without one)

 

 The commission in this industry are huge, but only if you get paid

 The ICPO must be a legal, enforceable document, because if you have a problem and sue, you can't win

 These ten items make the 'contract to buy' a legal document

 Few brokers are capable of determining if the ICPO is a legal document

 An incompetent broker doesn't really know when he has something valuable

 Being able to create a legally enforceable document makes the broker's efforts valuable

 The banking information should be first confirmed, by the broker and subsequently, by the seller

 Very few brokers confirm that the buyer can pay for the product or get an L/C; They don't know how to do it

 Most of the time, when we reach the finish line, we can't cross, because the buyer can't pay!

 Deals which don't close have no commission for anyone,

 It pays to learn brokering skills and do it right

 A skilled broker arrives at the bargaining table with good information

 A skilled broker is more valuable than an incompetent broker

 A skilled broker is a very welcome participant to any deal.