payment and transaction terms

Here are the simplified payment and transaction terms:

  • 1. Buyer sends LOI to STEELAVY with all details.
  • 2. STEELAVY responds with official FCO letter.
  • 3. Buyer signs FCO and sends it with Company Certificate to Seller.
  • 4. SPA contract is sent and mutually agreed upon.
  • 5. Buyer signs SPA and sends a soft copy to the seller.
  • 6. Seller reviews SPA and issues official Commercial Invoice.
  • 7. Buyer initiates draft letter of credit (LC) for 20% of contract value.
  • 8. Seller finalizes LC draft review and obtains the LC.
  • 9. Buyer's bank activates the LC within 14 days after issuing of the Commercial Invoice.
  • 10. Seller issues a Performance Bond Guarantee of 20% of the total contract value as PBG to the buyer's account bank against the LC.
  • 11. Seller complies and executes the processes of registering the purchase order within ten business days.
  • 12. Shipment starts.

IMPORTANT NOTE:

POP and sight inspection will only be submitted and exchanged after an official MT700 Swift request from the buyer’s bank to the seller’s bank has been sent. Any additional documentation will only be exchanged through secure bank channels and only through MT700 or MT705 Swift enquiry – BCL /MT199 / MT799 or other similar as Proof of fund or as Swift exchange are not accepted.