The Facilitation Process

Each stage has defined outputs and clear responsibilities. Principal identities are protected until both parties provide written consent for introduction.

Stage 01
Entry Point

Mandate Origination

A principal submits a buy-side or sell-side mandate via our engage form or direct contact. VN Trade assesses feasibility, corridor fit, and preliminary compliance clearance before accepting the engagement.

Buy-side or sell-side mandate received
Commodity, grade, quantity and corridor review
Preliminary compliance check on principal
Engagement letter and NDA executed
Stage 02
Qualification

Counterparty Identification & Qualification

VN Trade identifies and qualifies a matching counterparty from its principal network. Full KYC, sanctions screening and financial standing review are conducted before introduction is considered.

Counterparty identification from corridor network
KYC documentation and verification
OFAC / UN / EU sanctions screening
Principal identity protected until mutual consent
Stage 03
Alignment

Term Alignment & Term Sheet

VN Trade facilitates alignment between both principals on commercial terms — price basis, quality specification, incoterms, payment structure and timeline. A structured term sheet is issued once both parties are aligned.

Price basis and incoterm agreed
Quality spec and grade confirmed
Payment structure — LC, DP, DA — aligned
Term sheet issued — non-binding reference
Stage 04
Documentation

Documentation Advisory

VN Trade reviews both bilateral contracts to ensure mirror alignment. LC terms are reviewed for correctness, amendment risk and discrepancy triggers. Inspection, origin and compliance documentation requirements are confirmed.

Back-to-back contract review — buy leg and sell leg
LC terms review — UCP 600 aligned
Inspection clause and inspector appointment
Origin, phytosanitary, end-use documentation
Stage 05
Execution

Logistics & Execution Coordination

From vessel nomination to cargo arrival, VN Trade coordinates between principals to ensure execution proceeds as contracted. Laycan compliance, NOR tendering, draft survey and quality inspection management are handled as part of facilitation scope.

Vessel nomination and substitution rights
Laycan compliance and NOR monitoring
SGS / Bureau Veritas / Intertek coordination
Draft survey and cargo quantity management
Stage 06
Close

Settlement & Transaction Close

VN Trade supports document presentation, LC negotiation and post-shipment claims handling. Demurrage statements are reviewed and supported. The transaction is formally closed with both principals receiving a debrief.

Document presentation and LC negotiation
Demurrage laytime statement review
Post-shipment claims support
Transaction debrief — both principals

Standards We Apply

KYC Standards

All principals undergo full Know Your Customer review prior to engagement. Documentation retained per applicable retention standards.

Sanctions Screening

OFAC, UN and EU consolidated sanctions lists screened on all counterparties, vessels, flag states and jurisdictions involved in each transaction.

NDA Protection

All mandates are handled under mutual NDA. Principal identities are not disclosed to any counterparty without prior written consent from both parties.

GST Compliant

VN Trade is GST registered in India. Service fee invoices issued with applicable SAC code and tax treatment. MSME registered under Udyam.

How Our Fees Work

Facilitation Fee Structure

VN Trade charges a facilitation fee upon successful completion of a transaction. The fee is agreed in writing at the time of mandate acceptance and is invoiced as a trade facilitation and transaction advisory service.

Fees are not contingent on price outcome. Our interest is in transaction completion — not in price direction. This ensures our facilitation is commercially neutral between both principals.

Fee invoices are issued separately to each principal under bilateral service agreements. No tripartite fee arrangements are used.

Two Bilateral Agreements

VN Trade operates under two separate bilateral service agreements — one with the buy-side principal and one with the sell-side principal. There is no single tripartite agreement.

This structure ensures VN Trade is never a party to the underlying commodity contract. The sale and purchase agreement is concluded directly between principals.

Both principals are aware a facilitator is engaged. The commodity transaction itself, including title transfer, payment and delivery, is entirely between the two principals.

Ready to Submit a Mandate?

Buy-side or sell-side. All mandates reviewed within 48 hours.

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