“VENDOR GUARANTEES
FROM PRAXIS”

Vendor guarantees are specialized guarantees offered by Praxis that assure payment to your vendors in the event your business is unable to pay money owed. Vendor guarantees are a powerful finance tool enabling your business to grow and increase vendor purchasing power.

For example, a manufacturing client of ours needed to purchase a large quantity
of raw materials from a vendor. The vendor had already extended the maximum possible credit to the manufacturer. How could the manufacturer get the raw materials he needed without credit availability and without additional cash?
The answer is the manufacturer achieved his objective by using a Praxis vendor guarantee. Here is how it worked. Since there was availability in accounts receivable, Praxis provided a guarantee to the vendor insuring payment to the vendor if goods are shipped to the manufacturer and the manufacturer does not pay for the goods according to the terms outlined by the vendor. This guarantee proved tremendously beneficial to the manufacturer since he was able to get goods
he needed even though he did not have available credit and had no available cash. This example shows how Praxis clients can turn available accounts receivable into a powerful credit tool extending vendor purchasing power.