How Purchase Order Financing Works

1. Receive a Purchase Order:

  • You receive a large customer order but lack the funds to fulfill it.

2. Apply for PO Financing:

  • You submit an application to RMG, providing documents such as the purchase order and supplier estimates. RMG evaluates the creditworthiness of your customer and supplier.

3. Approval and Supplier Payment:

  • If approved, RMG pays the supplier directly, often covering 70% to 100% of the cost of goods or materials required to fulfill the order.

4. Order Fulfillment:

  • The supplier manufactures and delivers the goods directly to the customer.

5. Customer Payment:

  • After receiving the goods, the customer pays RMG directly.

6. Fee Deduction and Balance Transfer:

  • RMG deducts its fees and sends the remaining balance to you.