How Purchase Order Deals Work — A Supplier’s Perspective

The biggest risk for a supplier is financing the buyer’s payment delay — shipping goods and then waiting weeks to get paid. Mercato’s milestone deals are designed to remove that risk. Here is what the flow looks like from your side.

Step 1 — A PyME creates the deal

A PyME builds a deal around a purchase from you: the products, the amount, your Stellar address for payment, and the milestone split (for example 50% on shipment, 50% on delivery). They sign with their wallet to deploy an escrow contract on Stellar.

Step 2 — Investors fund the escrow

Investors commit USDC into the deal’s escrow. This is the key protection for you: the money that will pay you is locked in the contract before you ship, not sitting in the buyer’s account hoping they pay later.

Step 3 — You deliver against milestones

1. Fulfill the first milestone (for example, ship the goods) and provide proof.
2. Once it is approved, the contract releases that milestone’s payment to your Stellar address.
3. Complete the next milestone (for example, confirmed delivery) and provide proof.
4. On approval, the remaining payment is released to you.

Why approvals exist

Milestone approvals (by the PyME, and where enabled an admin for oversight or disputes) are what make investors comfortable funding the deal. They confirm that delivery actually happened before money moves — which is the same proof that protects you from disputes about whether you performed.