How to tell a deal or no deal

How to differentiate between real seller and broker.

1. The broker ask for LOI and mandate to sell before even agreeing on price.

2. The real seller ask for price agreeing before asking for LOI and mandate to sell.

How to differentiate between real buyer and broker:

1. The broker would ask for a transferable L/C, with your company as a second beneficiary. Now if he fails to submit his papers, while your papers already submitted, and the buyer's vessel already on their way...you only bite your fingernails, no money, no income!

2. The real buyer would ask for a non-transferable L/C, direct from buyer to seller. Then they will consider if your company a broker or not, and are your company worthy to be issued a transferable L/C with you as a first beneficiary...

How to differentiate between deals you can wait and deals you don't have to wait:

1. Do not wait when the buyer waits for their end buyer to open them L/C so that they can open L/C to you. Sometimes the wait is forever.

2. Wait for the L/C when the buyer did shown you their past L/C of the goods they have purchased before.

3. Do not ask for Proof of Funds, you'll never get it from the real buyer. Instead, ask for Bank Capability Letter of Reference Letter from the Bank stating the buyer has the financial capability to purchase the goods.

All these are real life experience brought into lessons to learn.