How to verify an SCO (soft corporate offer)
By the Vanguard Verify desk · Published 2026-10-25 · Updated 2026-10-25
Short answer: a soft corporate offer (SCO) is an indicative, non-binding offer. It proves nothing on its own. Verify the issuing company in its official registry, confirm the signer really works there, test the price against the market, and check that the payment and inspection terms are workable before you send an ICPO or any company documents.
In broker-led commodity chains an SCO usually comes first, before the buyer issues an ICPO and the seller issues a full corporate offer (FCO). Because an SCO is cheap to produce and commits nobody, it is also the document most often copied, re-sent along long broker chains or issued in the name of a real company by someone who has no link to it.
Steps to verify an SCO
- Identify the issuer exactly. Write down the full legal name, registration number, registered address and country. An SCO without a registration number is incomplete; ask for it.
- Check the official company registry in the issuer's country (for example Companies House in the UK, or the relevant free-zone or economic department registry in the UAE). Confirm the company is active, the address matches and the signer is a listed director or officer where the register shows officers.
- Check the LEI if one is quoted. Search it on the GLEIF database and make sure the legal name and address match the SCO.
- Contact the company independently. Use a phone number or email domain taken from the registry or the company's long-established website, not from the SCO. Ask whether they issued this offer and whether the signer is authorised.
- Check the product specification. Make sure it matches a recognised standard (ICUMSA grade for sugar, EN 590 for diesel, ASTM or GOST references for fuel oils) and that the stated origin really produces and exports that product.
- Test the price. Compare it with published market benchmarks. A price far below market is one of the warning signs the ICC Commercial Crime Services has repeatedly described in commodity fraud cases.
- Read the procedure. A workable procedure names an independent inspector (SGS, Bureau Veritas, Intertek and similar), a payment instrument issued by a bank (DLC, SBLC) and an Incoterms 2020 rule with a named port.
Red flags
- Seller asks for upfront fees, "legal" fees or document fees before any contract.
- Seller demands buyer bank details, POF via MT799 or a bank comfort letter before giving any proof of product (POP). Remember: the buyer gives POF, the seller gives POP.
- Huge annual volumes (for example 12 x 12-month contracts) offered by a company with no trading history.
- Free-mail addresses or a domain registered only recently.
- Terms such as "non-circumvention" and "bank comfort" used in place of real inspection and payment terms.
- The same SCO, with the same reference number, arriving from several unrelated brokers.
SCO vs ICPO vs FCO
| Document | Issued by | Binding? | What it should contain |
|---|---|---|---|
| SCO | Seller (or broker on seller's behalf) | No, indicative | Product, spec, quantity, indicative price, Incoterm, validity |
| ICPO | Buyer | Usually stated as conditional | Buyer's intent to purchase on stated terms |
| FCO | Seller | Offer, still subject to contract | Full terms, procedure, payment, inspection, validity |
Next steps once the SCO checks out: see how to verify an ICPO and how to verify an FCO. Nothing becomes binding until a signed SPA with clear payment and inspection terms is in place.
If an offer contains terms you do not fully understand, the ICC Commercial Crime Services advises seeking specialist advice before proceeding.
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FAQ
Is an SCO legally binding?
Generally no. An SCO is an indicative, soft offer that invites further negotiation. Binding obligations normally arise only under a signed sales and purchase agreement (SPA).
Should I send my passport or bank details in reply to an SCO?
Not until you have verified the issuing company in its official registry and confirmed the offer directly with the company using contact details from an independent source.
Who gives proof of funds and who gives proof of product?
The buyer gives proof of funds (POF); the seller gives proof of product (POP).
What makes an SCO credible?
A verifiable registered company, an authorised signer, a recognised product specification, a market-consistent price, independent inspection and a bank-issued payment instrument.
Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This answer is general information, not legal or financial advice.