Vendor guarantees are a product that we offer as an alternative to what is more commonly known as 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; a more costly and complex form of financing. Vendor guarantees are considerably cheaper, quicker, less complicated and can aid in building credit with vendors.
Essentially, 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. Once the goods are produced, we can provide two different guarantees to the vendor:
1. Upon receipt of funds from Businesscash.com, the supplier agrees to ship the goods directly to the end user.
2.BusinessCash will guarantee the vendor that once the goods have been shipped, and accepted by the end user, that funds generated from the factoring of the invoice will be wired directly to the supplier.The balance between payment of the purchase order and the gross amount of the invoice will then be wired to you.
In both instances, a one-page tri-party agreement is put in place between Businesscash.com, you and the vendor. For 15 years, we have been negotiating with vendors and the great majority are pleased to have the guarantee in place.
Other Business Cash Articles:
Vendor Purchase Order Funding Vendor Guarantees Unlike factoring which accelerates the cash from your invoices PO...