Vendor or Supplier Guarantee of Payment can get you more goods faster! The factoring company will agree to pay the supplier directly from the money advanced on the factored invoices.
A factor will provide 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.
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, often, suppliers offer a lower price or a percentage discount when you can wire them the funds within a certain amount of time.
A Vendor Guarantee helps your businesses grow. Suppliers will be willing to sell more goods with certainty that they will be paid on time or early. Meaning, there’s no limit to the number of goods businesses can sell as long as they meet the requirements. Businesses run smoothly, there are no costly delays or cancellations due to backorders, and working capital restraints do not limit a company’s sales. Selling to creditworthy customers is an excellent program for start-ups or new businesses looking to grow.
There are factors, like WIP Funding, that also provide Credit Enhancement. This is similar to a Vendor Guarantee because Credit Enhancement provides a guarantee that the supplier will receive the payment. The 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.
Suppliers release your goods to generate more sales through our Vendor or Supplier Guarantee program!
It will be custom writing tough for you to make an intro that will find a fantastic grade.