Trial Shipment & issuing SBLC

Trial Shipment & SBLC issuing.
 

Sellers/Titleholders get this question a lot about trial shipments using a Documentary Letter of Credit from brokers telling them the buyer is ‘at risk’ sending an SBLC.  
 

This is NOT accurate as the SBLC is held by Sellers' attorney or Asset Manager and Seller cannot divide it, transfer it or any other nefarious use!   
 

Seller cannot spend $MM to send a ‘trial shipment’ to someone; then ‘wish, hope & pray’ they have money and will buy it.    

Offering a DLC is using [bank] borrowed money to purchase a ‘one time’ shipment; then re-selling the vessel ‘at the port’ to an importer.
 

Seller can deliver NON Sanctioned fuel at OWN expense with NO upfront fees.   

Sellers' protocols are designed that is NO financial exposure to a buyer [or their financier].  Their system is easy to understand: Sellers buy and deliver as TITLEHOLDER with a DISCOUNT below PLATT.   

This means Sellers pay for the product, pay to lease a vessel, pay the export fees, pay to load and transport the vessel at their expense; delivering as product the OWNER. 

Sellers issue a contract and deliver monthly for 12 months.  Upon SBLC validation they provide the lease, load, launch and product documents to the ‘contract signor’ (ie: BUYER). 

Sellers also purchase a LLOYDS of London vessel policy which guarantees delivery.  They only deal with top rated world bank and issue a 2% PB which protects the buyer (if requested).   

IF the buyer has the money their banker ‘can’ transmit an SBLC.  

Sellers can accept a Chinese Bank SBLC if the ‘branch’ (office) sending it is outside mainland China. 

There is NO RISK to the buyer.  Sellers can accept a third party SBLC if needed but the ‘financier’ must send the Banker Signed RWA Letter and issue the SBLC to our banker.  They must be SURE about the buyer as the buyer can ‘backout’ for any contract violation without repercussions.