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What is the Difference Between a Personal Guarantee and Validity Guarantee?

Posted by Chris on Feb 28, 2018 in Business Tools, Invoice Factoring | Comments Off on What is the Difference Between a Personal Guarantee and Validity Guarantee? |

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...

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