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How to Buy a Used Gas Turbine Safely: NCNDA, LOI and Proof of Funds
A used gas turbine costs several million dollars, and several intermediaries often market the same unit at once. That attracts serious sellers and also fraud. The process you insist on is your best protection. This guide explains the usual steps and the warning signs.
Why sellers hold back information
The owner, the exact location and the price of a unit are commercially sensitive. If a broker published them, other parties would bypass the chain within days. So each side reveals more as the other side shows it is real. Confidentiality at the start is normal.
The steps in order
- Letter of Intent (LOI). The buyer names the unit, the quantity and the intention to buy subject to inspection.
- Proof of funds. A bank-confirmed document shows that the buyer can pay. A screenshot of an account balance does not count.
- NCNDA. A non-circumvention and non-disclosure agreement protects all parties before serial numbers, location and owner are disclosed.
- Documents and inspection. The buyer receives the technical documentation and inspects the actual unit, in person or through an independent inspector.
- Payment. Payment runs through an independent escrow account or a documentary letter of credit.
Export control and sanctions rules apply to every deal. Destination and end user are screened before a contract is signed.
Warning signs of a fake listing
- The seller asks for a deposit or a fee to a private or company account.
- The seller demands an inspection fee before you have seen any document.
- You have shown proof of funds, but the seller shows no title, mandate or serial numbers in return.
- The seller creates pressure: another buyer pays today, the price is valid for 24 hours.
- The same unit appears in many listings at different prices, and the photos do not match the specification.
Buying through LKS360 EXIM
LKS360 EXIM acts as independent broker for used and surplus gas turbines, steam turbines and gensets. The units belong to their owners. You find the current list in our catalogue Used Gas Turbines and Gensets.
Contact: manager@lks360.com, WhatsApp +49 170 4656619
This article is general guidance. It is no legal or export control advice.
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