Why the suppliers keep asking for letter of interest?
Post 12 of 22
Replying to [grigo]:
If in crude oil trading, suppliers always ask the would be buyers to send their LOI and BCL(funding details?)before they can issue a contract or even a quote. In this case, there seems no way that you can avoid the suppliers and buyers making direct contacts once the game starts. If the side you are getting commision with fail to deliver the goods, what can you do? Any good ideas?![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif)
If in crude oil trading, suppliers always ask the would be buyers to send their LOI and BCL(funding details?)before they can issue a contract or even a quote. In this case, there seems no way that you can avoid the suppliers and buyers making direct contacts once the game starts. If the side you are getting commision with fail to deliver the goods, what can you do? Any good ideas?
03 Oct 2006 02:17
Post 13 of 22
Replying to [RookieTrader]:
LOI is Letter of Intent not letter of interest. It lays out who you are, what you can do and what you want to do.
It allows the supplier to see you are a valid customer and not a shark.
LOI is Letter of Intent not letter of interest. It lays out who you are, what you can do and what you want to do.
It allows the supplier to see you are a valid customer and not a shark.
04 Oct 2006 06:16
Post 15 of 22
Can any one Give a sample Letter of interest (LOI) or any link for it.
21 Oct 2006 03:40
Post 16 of 22
Replying to [ALESER]: It must be stamped & signed on all pages to safe guard your position you can forward your details to me ramdhan at optonline dot net
27 Oct 2006 08:40
Post 17 of 22
Replying to [shams]:
Check the following sites![[em3]](http://img.alibaba.com/images/eng/style/icon/emoticons_grin.gif)
http://www.allbusiness.com http://blr.com http://career.ucsd.edu/sa/INTERNLetterofIntent.shtml http://www.national-letter.org/
Check the following sites
http://www.allbusiness.com http://blr.com http://career.ucsd.edu/sa/INTERNLetterofIntent.shtml http://www.national-letter.org/
27 Oct 2006 08:44
Post 18 of 22
Replying to [RookieTrader]:
An LOI ( Letter of Intent) takes us out of the atmosphere of casual business conduct or daily dealings to a more specific method of operation. In a sense, it is a rule of engagement. An LOI states the necessary information, for a trader or manufacture to determine the seriousness and overall knowledge of the inquirer. For this reoson, most successful businessmen and women do not jump from branch to branch, and gain as much knowledge on a certain industry or product as they can so when they speak to a seller or a manufacture they can speak with the necessary tone to gain the confidence of the buyer or buyers. An LOI can be documented and studied, but a phone call or a simple email will leave many questions unanswered, thus very busy businessmen will not take a person without a clear indication of what they want, such as quantity, origin, quantity, method of payment and much more as a major potential beneficial partner. We were all rookies at one point, and we all learn and more each day.
An LOI ( Letter of Intent) takes us out of the atmosphere of casual business conduct or daily dealings to a more specific method of operation. In a sense, it is a rule of engagement. An LOI states the necessary information, for a trader or manufacture to determine the seriousness and overall knowledge of the inquirer. For this reoson, most successful businessmen and women do not jump from branch to branch, and gain as much knowledge on a certain industry or product as they can so when they speak to a seller or a manufacture they can speak with the necessary tone to gain the confidence of the buyer or buyers. An LOI can be documented and studied, but a phone call or a simple email will leave many questions unanswered, thus very busy businessmen will not take a person without a clear indication of what they want, such as quantity, origin, quantity, method of payment and much more as a major potential beneficial partner. We were all rookies at one point, and we all learn and more each day.
27 Oct 2006 09:45
Post 19 of 22
Replying to [RookieTrader]: It is not too serious that LOI is the Letter of Intent or Letter of Interest because LOI is not the Order Confirmation or Purchase Contract, to guarantee that buyer will buy the product. Practically, LOI is requested by the seller incase that the inquiry is for the huge order quantity because the seller can study the details of the products, terms and conditions of the buyer before offering especially in the points of terms and conditions and payment methods. However, if you are the trader, you might be ask your buyer, the LOI. To protect yourself, you can also change the letter head of the buyer to your letter head and sent to the seller.
27 Oct 2006 11:58
Post 20 of 22
Replying to [RookieTrader]: Wouldn't the L/C work the same way? You accept the L/C from your supplier and draw up one between you and your buyer with the particular terms you have set. Don't you buy for multiple clients at the same time? In a case like that would that not require an LOI from you with the combined requirements and then, you would have to draw up individual L/Cs for your buyers?
06 Nov 2006 18:50
Post 21 of 22
Replying to [ALESER
To the orginal poster, an LOI is a worthless piece of paper that offers absoluetly no commitement it only states an 'intent' for example:
Monday: "I intend to buy 100,000 MT cement' - Tuesday "I have changed my mind".
Just becasue you say you intend to do something, it does not mean you are actually going to do it.
An LOI has absolutely no basis in law whatsoever, LOI's (as well as BCL's) are only asked for by two types of traders
1) Fraudulent ones trying to get hold of the End-buyers details to try and circumvent you
2) Clueless Traders who have trawled through trade sites like Alibaba and seen other suppliers asking for the same thing, so have simply adopted the same language thinking this is what they need to ask for.
LOI's (as well as BCL's) are NEVER asked for in real bulk commodity trade agreements.
The intention to pucrhase (and the proof of having the funds to pay for the goods) is proven by the End -Buyer by opening up an LC with his Bank.
Its a depressing thought, but 99.9% of commodity traders here do not have the first clue what they are doing. If you deal with any large commodity dealerwho asks for an LOI (or BCL) you will NEVER, EVER see any commission. That’s a 100& guarantee.
Take Care.
To the orginal poster, an LOI is a worthless piece of paper that offers absoluetly no commitement it only states an 'intent' for example:
Monday: "I intend to buy 100,000 MT cement' - Tuesday "I have changed my mind".
Just becasue you say you intend to do something, it does not mean you are actually going to do it.
An LOI has absolutely no basis in law whatsoever, LOI's (as well as BCL's) are only asked for by two types of traders
1) Fraudulent ones trying to get hold of the End-buyers details to try and circumvent you
2) Clueless Traders who have trawled through trade sites like Alibaba and seen other suppliers asking for the same thing, so have simply adopted the same language thinking this is what they need to ask for.
LOI's (as well as BCL's) are NEVER asked for in real bulk commodity trade agreements.
The intention to pucrhase (and the proof of having the funds to pay for the goods) is proven by the End -Buyer by opening up an LC with his Bank.
Its a depressing thought, but 99.9% of commodity traders here do not have the first clue what they are doing. If you deal with any large commodity dealerwho asks for an LOI (or BCL) you will NEVER, EVER see any commission. That’s a 100& guarantee.
Take Care.
07 Dec 2007 07:34