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.

Example

  • 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.