How a Deal Works

The Process

Every transaction follows an established, defensible path, so both sides know exactly where they stand at each stage, from first contact to title transfer.

Crude trading fails when steps are skipped or trust is assumed. Malico runs a disciplined, sequenced procedure that protects every party, buyer, seller, and intermediary alike, and leaves a documented trail at each milestone. Here is exactly how a deal moves from introduction to delivered cargo.

1

NCNDA / IMFPA Mutual

Before any sensitive information changes hands, all parties sign a Non-Circumvention, Non-Disclosure Agreement and an Irrevocable Master Fee Protection Agreement. This safeguards relationships and commission structures, ensuring no party is bypassed and every intermediary's fee is legally protected for the life of the deal.

2

ICPO & Soft Corporate Offer Buyer / Seller

The seller issues a Soft Corporate Offer setting out product, specification, volume, and indicative pricing. The buyer responds with an Irrevocable Corporate Purchase Order confirming intent, target price, and delivery terms. This aligns commercial expectations on paper before either side commits resources.

3

Contract & SPA

Terms are formalised in a Sales & Purchase Agreement, the binding contract of the transaction. Incoterms, pricing formula, payment instrument, lifting schedule, inspection regime, and demurrage terms are all negotiated, agreed, and executed, removing ambiguity before the cargo is committed.

4

Proof of Product & Proof of Funds

The seller presents verifiable Proof of Product, evidence the cargo genuinely exists and is available to lift. In parallel, the buyer presents Proof of Funds or a bank comfort letter. Both are cross-checked and validated so neither side advances on an empty promise.

5

Inspection & Settlement SGS · Escrow

An independent inspector, SGS, CIQ, or equivalent, verifies quality and quantity at loading. Payment then settles strictly against those inspection reports, released through a Documentary Letter of Credit or escrow, so funds move only once the product is confirmed to specification.

6

Delivery & Title Transfer

The cargo is lifted and delivered per the agreed Incoterms. Title and shipping documentation transfer to the buyer, the transaction closes, and the protected commissions are paid out to every party named in the fee agreement. The deal completes exactly as documented.

Timelines and instruments vary by grade, origin, and jurisdiction. Malico tailors the procedure to each transaction while holding to the same standard of documentation, inspection, and secure settlement on every deal.

Ready to begin?

Share the essentials of what you are sourcing or placing, and our desk will open the process with a soft offer or an ICPO template. Every inquiry is handled in confidence.

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