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. This is because it is a 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 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. This ensures that it will be able to recover the upfront payment they have provided you in case...
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