What is Export Factoring?
Export factoring is a flexible way of improving cash flow for those businesses involved in international trade. It releases cash tied up in both domestic and export invoices and relieves the time consuming and often complex task of chasing and collecting payments from customers overseas.
Export factoring providers have specialist overseas sales ledger management skills, conducting multilingual negotiations and taking account of legal and cultural differences.
Benefits of export factoring
Immediate cash injection
By releasing money as soon as an invoice is raised, rather than having to wait 60 plus days for your customer to pay, meaning you have funds available to use in your business immediately.
Improved cash flow
Means you can tender for new business and start work on new orders without delay. You can settle bills promptly, improving supplier relationships and possibly securing early settlement discounts.
Ongoing working capital
Export factoring allows flexibility. The funds you can access grow in line with sales and without the need for you to re-negotiate overdraft limits. By accessing funds from invoices immediately, it’s often possible for you to repay bank facilities and release previously pledged security.
Some factoring providers are also prepared to provide finance against other assets, or even unsecured loans, as part of a packaged solution.
Save management time
Export factoring frees up valuable management time by providing a cost effective way of outsourcing your sales ledger management to a team with multi-lingual skills and knowledge of international currencies, cultures and legal systems.