Funding Sales To International Customers
Using your invoices to raise finance. This service can be used by domestic and international businesses to increase sales. Funding could be by way of an export factoring agreement or by way of a specialist funder that makes funding available when the goods are FOB (aboard) the ship on export.
HOW DOES IT WORK
Export Factoring Available On Shipping
We have funders that specialise in cross-border transactions and finance trade anywhere in the world for sales made on open account, letter of credit, and documentary collections payment terms.
Factoring can solve short-term cash flow issues by purchasing your company’s account receivables in exchange for an advance of up to 95% of the total invoice value. The full amount is then collected from your customer upon invoice maturity. Once the invoice is paid in full, you are sent the remaining balance. There is an emphasis on eliminating trade risk, through non-recourse factoring, which provides you with credit protection and assistance in collecting outstanding invoices.
Export Factoring on Open Account Terms
Financier checks the creditworthiness of your buyer and sets a credit limit on them.
Your accounts receivable are purchased and you are generally paid within 24-48 hours of invoice submission.
The management of your accounts is handled by the funder who manages the collection of the receivable.
In the case of customer insolvency or protracted default where non recourse is taken you are covered for the amount of the credit limit less any first loss.
Export Factoring via Payment Against Documents
If you sell on documentary terms, funders will advance you funds and handle the bank collections process. Credit protection is also available for further protection.
Export Factoring via Letter of Credit
Your buyer opens a letter of credit in favour of the funder, which guarantees you are paid if the terms and conditions specified in the letter of credit are fulfilled. Funding is advanced against this letter of credit.
BENEFITS OF INTERNATIONAL FACTORING
Cash-flow to Trade
Factoring, also known as invoice financing or account receivable financing, helps companies accelerate cash flow, improve collections and control exposure to bad debts. It enables companies to generate more sales by offering longer payment terms without disrupting cash flow.