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Glossary
2026-10-16 12:02

FCO and SCO (Full and Soft Corporate Offer)

An FCO (Full Corporate Offer) is a seller's written offer containing the complete terms it is prepared to sign; an SCO (Soft Corporate Offer) is a shorter, indicative offer used to test a buyer's interest. Both are the seller's answer to a buyer's LOI or ICPO.

At a glance

Issued bySeller
Legally bindingNo; the SPA is the binding contract. A countersigned FCO shows acceptance of terms
WhenAfter the buyer's LOI or ICPO
FCO contentsSpecification, origin, quantity and tolerance, duration, loading port, Incoterms, delivery window, price basis, payment instrument, procedure, inspection, validity
SCO contentsProduct, quantity, Incoterms, indicative price basis

How it is used in EN590 deals

A buyer usually countersigns the FCO to show acceptance and the parties then negotiate the SPA. The procedure written in the FCO matters most: it shows who takes risk and when money moves. A fair procedure releases payment against inspection and shipping documents under a bank instrument.

Watch out for

  • Large monthly volumes at deep discounts with no verifiable origin.
  • Procedures that require payments or deposits before an SPA.
  • FCOs reused across many chains with only the buyer's name changed.

Related terms

ICPOPOPSPAFOB and CIFGuide: verify a seller