The commodity business is very profitable but also very risky. From fake buyers to fake sellers. International buyers are reluctant to issue Letters of Credit (L/C) for millions of dollars and take a chance that the seller is real and will ship as agreed.
Failure to ship can easily cost buyers tens of thousands of dollars in fees and loss of use of their money for 60 or more days. This is because once the L/C is issued it cannot be canceled. Usually, the L/C has an expiration date of 60 days or more to allow time to get the cargo ready, charter the vessel (or book the space in a container ship), load the cargo and time to present documents to the bank for payment.
Our Guarantee was “You can call the factory in Peru or Chile and confirm your order” and we welcome you in South America at the time we load your cargo.
It only happened on the first order. After that, there was trust that we had the capacity and reliability. Future customers could talk to them and get references.