DID YOU KNOW?

The following information will be the first in a series to help understand the benefits of business financing.  In particular, the following pertains to Purchase Order Funding & Invoice Factoring.  Invoice Factoring is cost effective and relatively simple.  With Invoice Factoring, your company is advanced approximately 80% of the invoice amount NOW.  When your client pays a factor the remaining balance of the invoice, your company receives the remaining 20% less the factoring fee.

Here is the $64,000 question:  What if your company does not have the money to buy needed goods?

Here is the answer:  Purchase Order Financing or a Vendor Guarantee…  Purchase Order Funding is where a factor steps in and buys the needed goods or alternatively, a Letter of Credit or the use of a factor’s creditworthiness to allow your vendor to release the needed goods and be paid from the Invoice Factoring proceeds (a.k.a. Vendor Guarantee).

***Purchase Order Funding / Financing goes hand-in-hand with Invoice Factoring***

A Vendor Guarantee is inexpensive and less of a risk compared to alternative methods.  A factor, experienced in this arena, contracts with the vendor to provide enough of the factoring proceeds to cover the vendor’s invoice to your company.

https://www.paragonfinancial.net/how-factoring-works/articles-resources/factoring-articles/how-vendor-guarantees-work/?ID=195214284

THANK YOU for reading…

DOUG ILES
Owner, Beneficial Brokers LLC
https://www.beneficialbrokers.com
https://www.beneficialbrokers.com/blog
https://www.linkedin.com/in/dougiles
https://www.facebook.com/DougTheBeneficialBroker
doug@beneficialbrokers.com
Toll-Free:  877.740.2540

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