Trade Documents
What Is an SCO in International Trade? Soft Corporate Offer Explained
4 min read
The SCO is usually the first commercial document a buyer receives. Here is what belongs in one, and how it differs from an FCO.
What Is an SCO?
SCO stands for Soft Corporate Offer. It is commonly used in commodity trading to present the seller's preliminary commercial terms to a prospective buyer.
An SCO is not the same as a final sales contract. It usually provides enough information for the buyer to evaluate whether the proposed transaction is commercially suitable.
What Information Should an SCO Contain?
A professional SCO commonly includes:
- Product name
- Product specification
- Country of origin
- Available quantity
- Minimum order quantity
- Contract quantity
- Packing
- Loading port
- Destination
- Incoterm
- Price
- Inspection procedure
- Payment terms
- Shipment schedule
- Offer validity
For regulated products, additional certificates or approvals may also be mentioned.
Example
For a copper transaction, an SCO might specify:
| Field | Detail |
|---|---|
| Product | Copper Wire Scrap — Millberry |
| Purity | Minimum 99.9% |
| Quantity | Trial quantity subject to agreement |
| Destination | Chittagong, Bangladesh |
| Incoterm | CIF |
| Inspection | SGS or Bureau Veritas at loading port |
| Payment | 100% Irrevocable L/C at Sight |
This gives the buyer enough information to determine whether further negotiations should proceed.
SCO vs FCO
An SCO generally represents preliminary commercial terms. An FCO — Full Corporate Offer — may be issued later with more definitive transaction details.
Terminology can differ between industries and counterparties, so the parties should clearly establish what each document represents.
What Should Buyers Check?
Before accepting an SCO, review:
- Company details
- Product specifications
- Origin
- Price
- Inspection
- Payment procedure
- Delivery period
- Offer validity
An attractive SCO should still be independently verified.
Final Thoughts
The SCO can be a useful early-stage document for organising international commodity negotiations.
Clear and complete commercial terms make it easier for genuine buyers and suppliers to determine whether a transaction is worth progressing.