Trade enquiry
COMMERCIAL STRUCTURESKDL / 03

The product has a route.
The transaction needs one.

Define the parties, delivery basis, payment sequence and documentary conditions before the operation becomes a commitment.

CLARITY BEFORE COMMITMENT

Commercial terms
that work together.

A payment method is one part of a trade. It has to match the supplier’s obligations, the cargo or material handover and the buyer’s receiving position.

The contractual capacity of each party is defined for the operation. Financing, bank instruments, insurance and independent escrow arrangements are considered only where the relevant providers and counterparties accept the structure.

MECHANISMS / RESPONSIBILITIES / EVIDENCE

Match the structure
to the actual trade.

01 / COMMERCIAL STRUCTURE

Documentary credit

Align applicant, beneficiary, banks, amount, currency, shipment/presentation dates, document requirements and payment maturity. The instrument and supplier obligations must be compatible.

02 / COMMERCIAL STRUCTURE

Staged or advance payment

Define what each payment covers, the evidence for each milestone and the remaining obligations before release or final settlement.

03 / COMMERCIAL STRUCTURE

Independent escrow

Where agreed, define the appointed independent agent, account/beneficiary, custody of funds, release conditions, disputes and reconciliation. KDL is not presented as the escrow provider.

04 / COMMERCIAL STRUCTURE

Supported deferred terms

Where a bank or insurer-backed arrangement is proposed, establish the actual debtor, support, maturity and conditions accepted by all relevant parties.

Banking, insurance, credit approval and regulated services remain with the appointed providers. Their acceptance, cost and conditions are transaction-specific.

THE BASIS OF THE OFFER

A named place.
A shared understanding.

01

Delivery basis

State the chosen Incoterm, named place/port and agreed edition. Clarify the allocation of transport, insurance, customs and handling responsibilities.

02

Price basis

Define currency, unit, quantity tolerance and any fixed/index-linked mechanism, premiums, adjustments and validity.

03

Quality acceptance

Agree the specification, sampling/testing basis, inspection provider and acceptance process.

04

Title, payment & release

Set these expressly in the contract. Delivery terminology alone does not replace the payment, ownership and release agreement.

THE NEXT COMMERCIAL CONVERSATION

Define the requirement.
Build the next move.

Buying, supply or a structured trade programme. Start with the product, the parties and the delivery basis.

Prepare your trade enquiry