Performance bond, the key clause of LOI. The letter of credit opened by the buyer is valid only after PB pays. A letter of credit is generally an irrevocable confirmed letter of credit at sight.

LOI ICPO BCL FCO POF and POF PB are used for bulk energy and raw materials business.

Generally speaking, there are fixed procedures:

1- the buyer opens LOI and BCL.

2- The seller provides FCO or draft contract.

3- Sign the contract, indicating the original contract.

4- Draft Letter of Credit issued by the Buyer

The 5- PB provided by the seller is generally 2 points.

6- Formal Letter of Credit

7-POP

8- Shipping