BusinessCash is funding during the COVID-19 crisis.

What is a Supplier or Vendor Assurance Program?

As a wholesaler, importer, or distributor, many times, you will have an order from a client that is beyond your credit limit with your suppliers. Factors can use their creditworthiness to entice your vendors to release the goods. That way, you can fulfill that large order that you usually would have to pass one.

What is a Vendor Guarantee?

Vendor guarantees are a product that we offer as an alternative to the Purchase Order Financing. Companies who need capital to purchase goods from their vendor and have it drop shipped directly to their customer usually seek a form of Purchase Order Funding, which is a more costly and complex form of financing. Vendor guarantees are considerably cheaper, quicker, less complicated, and can aid in building credit with vendors.

Primarily, the supplier is relying on the credit and guarantee of BusinessCash for payment of the goods. In a supplier guarantee, the vendor must at least agree to produce the goods initially.

What are the Different Kinds of Guarantees can I use for my Business?

After the production of goods, we can provide two different guarantees to the vendor:

  1. Upon receipt of funds from the factor, the supplier agrees to ship the goods directly to the end-user.
  2. Factors will guarantee the vendor that once the shipment of goods is complete and is already accepted by the end-user. Also, that funds generated from the factoring of the invoice will be wired directly to the supplier. They will then be sending you the balance between payment of the purchase order and the gross amount of the invoice.

In both instances, there is a one-page tri-party agreement between the factoring company, you and the vendor.

For years, BusinessCash has been negotiating with vendors, and the vast majority are happy to have the guarantee in place.

For questions or to talk to a Vendor Assurance Program Specialist, call us at (888) 400-5930, use our contact form or e-mail us.

Have questions about our supplier or vendor program? Call (888) 400-5930 or use the fast, safe & secure online funding application.

Back to Top