Buyer sends Letter of Intent on company letterhead, which should include minimally the following information:
Buyer provides proof of funds (POF)
o If it is a certified letter of funds from a Bank, it must be on bank letterhead
in the name of the company listed on the LOI or an affiliate thereof
o Attorney representation letter or attorney-to-attorney is also an option
After receipt of LOI and POF, deal terms can be discussed.
(Note: Due to the deep chains of brokers shopping around and aiming to spend time negotiating terms, it has become imperative for us to vet legitimate buyers.)
Agreed upon terms are documented via a contract or purchase order (PO). Terms are submitted to seller via a contract or purchase order executed by buyer.
Buyer is required to open escrow and deposit one (1) full month of funds to cover cost of full month of product no matter what the pickup frequency is. A minimum deposit may be required and collected for larger orders due to contract value and cost of biomass to create product, which could equate up to 120% deposit required to initiate order and quarantine of product for buyer. Buyer must understand that they have to share in the risk since we are buying biomass and funding the manufacturing in order to fulfill their order.
Shipping/Transport (FOB) must be arranged at buyers cost.
Please keep in mind that product must be shipped in compliance with producers requirements.
(Note: Products do have a shelf life and must be shipped and stored under temperature- controlled conditions to keep product from being damaged)
Upon final notification of product ready for pickup, buyer has 5 business days to complete sample testing and to validate product meets specifications.
Buyer releases full value of product and product is released for shipping.
Broker’s commission paid net 30 days for the first delivery and net 15 days for all remaining deliveries for each individual contract after buyer accepts and funds full order. (Net 30 days is required to allow for product returns or other unknown issues that could occur.)