What is an FCO (Full Corporate Offer)?
A Full Corporate Offer (FCO) is the seller's formal written offer to supply a commodity. It follows the buyer's LOI or ICPO and sets out every commercial term the seller is prepared to trade on, so that the buyer can accept it or counter it.
At a glance
| Term | FCO (Full Corporate Offer) |
|---|---|
| Definition | Seller's binding offer with full commercial and delivery terms, valid for a stated period. |
| Category | Deal flow & documents |
| Related terms | LOI (Letter of Intent), ICPO (Irrevocable Corporate Purchase Order), POP (Proof of Product), SGS Report |
What it is used for
The FCO turns a general discussion into a specific, checkable proposal. Once countersigned it usually forms the basis of the sales contract, so the terms in it — price, Incoterms rule, delivery schedule, payment mechanism — are the terms that get drafted.
Key points
- Issued on the seller's letterhead, signed, and addressed to the named buyer.
- States product and full specification, origin, quantity per shipment, total contract quantity and delivery schedule.
- States price and the Incoterms rule with the named port or place, plus any price basis or index.
- States the payment instrument, inspection arrangements and a validity period after which the offer lapses.
What to watch for
- An FCO with no validity date, no named signatory, or no specific loading port is a warning sign.
- Check that the quoted price and Incoterms rule are consistent — a CIF price and an EXW price for the same cargo should differ substantially.
- An FCO is only as good as the seller's control of the goods. Verify the supply chain rather than the document alone.
Frequently asked questions
Is an FCO binding on the seller?
Within its validity period an FCO is usually intended as a firm offer capable of acceptance, but that depends on its wording and the governing law. Many FCOs are expressly 'subject to contract'.
What is the difference between an FCO and a soft offer?
A soft offer is indicative and can be withdrawn or changed freely. An FCO is presented as complete and firm for a stated period.
How long is an FCO valid?
Typically a few business days to two weeks. Commodity prices move, so short validity is normal and not a red flag on its own.
Related terms
Lodfy verifies every company on the platform — registration, ownership and sanctions screening — before they can trade.