Another Form of Financing That WIP Funding Provides Is Vendor Payment or Supplier Guarantees.
WIP Funding will agree to pay the supplier directly from the money advanced on the factored invoices. WIP Funding provides a portion of the advance directly to the supplier from the proceeds of the invoice factoring. The supplier receives the payment via wire at the same time the business gets the balance of the proceeds of the factored invoices. This Vendor or Supplier Guarantee of Payment can get you more goods faster!
It is often easier to get a supplier to agree to this arrangement if they have denied or limited an open credit line to a company. Additionally, suppliers usually give preferential treatment to orders that have guaranteed payment from finance companies. Finally, suppliers, many times offer a lower price or a percentage discount when you can wire them the funds within a certain amount of time.
A Vendor Guarantee from WIP Funding helps your businesses grow. Suppliers will be willing to sell more goods when they are sure they will be paid on time or early. This means there’s no limit to a number of goods businesses can sell, as long as they meet the requirements for WIP Funding’s Vendor Guarantee Program. Businesses run smoothly, there are no costly delays or cancellations due to backorders, and a company’s sales are not limited by working capital restraints. Selling to creditworthy customers, this is an excellent program for start-ups or new businesses looking to grow.
WIP Funding also provides Credit Enhancement. This is similar to a Vendor Guarantee because WIP Funding provides a guarantee that the supplier will receive the payment. This Credit Enhancement comes with the same benefits as the Vendor Guarantee; such as priority processing, discounts and credit protection against debtor insolvency. Credit Enhancement can also raise a company’s overall credit score and improve a company’s credit profile.