What is the Difference Between a Personal Guarantee and Validity Guarantee?
It is critical to understand the difference between a personal guarantee and a validity guarantee. The difference between the two is key to understanding your invoice factoring paperwork. By law, a guarantee is an undertaking to answer for the payment or performance of another person’s debt or responsibility in the event of a default by the person primarily accountable for it. Therefore, a guarantee is a promise from your business to your factoring company. This ensures that it will be able to recover the upfront payment they have...
read moreWork-in-Process (WIP) Financing
Work-in-process (WIP) financing is part of a company’s inventory that is partially complete. The value of that partially completed inventory is sometimes also called goods in process on the balance sheet. Do not value the finish products the same as Work in process. However, they are worth more than raw materials, having incurred labor and overhead. This allows you to leverage work-in-process for financing. BusinessCash.com is one of the few non-bank lenders offering WIP financing. Many factors involve funding a WIP, including...
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