Step 1 You get a large purchase order from your customer.
Step 2 Fondomex, et al, verifies it, and opens a Letter of Credit to pay your supplier.
Step 3 Your supplier manufactures and ships its goods.
Step 4 Finished goods are delivered (inc. inspections, etc.). Your customer pays Fondomex, et al.
Step 5 Fondomex remit your profit back to you.
- ABC Company receives a solid secure purchase order from XYZ Corporation (A Big Box Retailer) for 12 containers of widgets.
- The entire order is to ship complete from South Asia (or domestic manufacturer) and possession is taken by XYZ upon accepted delivery to their central distribution facility in Mexico.
- The manufacturer requires an irrevocable L/C to manufacture and ship the goods.