What is the Difference Between a Personal Guarantee and Validity Guarantee?
It is crucial to understand the difference between a personal guarantee and validity guarantee as it is a key to understanding your invoice factoring paperwork. By law, a guarantee is defined as an undertaking to answer for the payment or performance of another person’s debt or obligation in the event of a default by the person primarily responsible for it. Therefore, a guarantee is a promise from your business to your factoring company ensuring it will be able to recover the upfront payment they have provided you in case your customer...
read more(WIP) Work-in-Process Financing
Work-in-process (WIP) is part of a company’s inventory that is partially completed. The value of that partially completed inventory is sometimes also called goods in process on the balance sheet. Work in process is not valued equally to completed goods, but they are worth more than raw materials having incurred labor and overhead. This gives work-in-process components the opportunity to be leveraged for financing. BusinessCash is one of the few non-bank lenders offering WIP financing. There are many factors involved in...
read more