For over 18 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the US. They serve small to large-size companies across a wide variety of industries through accounts receivable, invoice factoring and purchase order financing up to $3 million per month in volume. Paragon is a leading source for receivables financing, government contract financing, payroll funding, and purchase order financing. For more information visit www.paragonfinancial.net.
What is a vendor guarantee? Vendor guarantees are
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 a factoring company 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:
·
Upon receipt of funds
from the factor, the supplier agrees to ship the goods directly to the end
user.
·
The factoring company
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.
Source: Free Articles from ArticlesFactory.com