What is International Factoring?
International factoring is a practice wherein companies engaged in cross-border transactions can sell their accounts receivables/or trade receivables to a factoring company in exchange for an immediate advance on the invoice amount. The debtors end up being the foreign company and can pay the company availing of the factoring service in a foreign currency of their choosing.
Because the factoring companies in these deals are often located in the same country as the importer, the exporter gains the benefits of local collection resources to help ensure payment is made promptly.
Why Should Exporters Choose International Factoring Services?
In addition to the usual benefits of factoring, international factoring allows exporters to conduct secure trade transactions, solve their working capital woes and thereby increase revenue significantly.
Other significant benefits of using international factoring for exporters may include the following:
• Business Expansion: Since payments are secured and guaranteed, businesses can easily enter different geographies due to the mitigated risks.
• Less documentation: Unlike traditional loans and advances, there are no extensive documentation requirements or procedures.
• Protection against bad debts: Non-recourse international factoring offers protection against the insolvency of international buyers.
• Seamless collection process: Factoring companies count on their expertise in dealing with multiple businesses in different countries across the world.
ExpoCredit International Factoring Solution
ExpoCredit understands the complexities of international receivables, supply chain transactions, dynamic marketplaces, and the obstacles businesses may face in obtaining financing in today’s market.
We are a full-service, international financial organization with over 20 years of experience helping companies of all sizes and in various industries strategically navigate their finance options and unlock the working capital tied up in their unpaid debt.
Our team of experts will provide a 360-degree A/R solution, including a comprehensive suite of integrated services, from credit analysis to accounting services, to help save you time and money, minimize risk, and enhance your customer relationships.
Some of our international factoring benefits include the following:
• Domestic and international A/R financing; your debtors can be anywhere in the world.
• Receive up to 90% of the value of each invoice.
• Non-recourse: We assume the risk of collection and payment default.
• No need for collateral, asset appraisals, or financial covenants.
• No prepayment penalties.
• Does not put your assets at risk or require you to give up equity in your company.
• Can be adjusted up or down according to your needs.