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Export factoring is when a business sells its credit invoices at a discount to a export factor company for so that up to 95% of the invoice value can be received within 24 hours. Export factoring is a special type of invoice factoring. Some factoring companies work within worldwide networks such as International Factors Group (IFG) and Factors Chain International (FCI), providing wider reaching support for users of export facoring.

What is the advantage of Export Factoring?

  • If a business sells its credit invoices to a export factoring company it will not have to wait the entire 30-120 debtors payment days usually taken.
  • If a business sells its credit invoices to a export factoring company it can receive up to 95% of the invoice value.
  • The export factoring company will then pay the balance of the export invoice, less any fess, at a later date.
  • Export factoring provides working capital to reinvest into funding business’ growth.
  • By using export factoring its avoids the delays in waiting for payment for customers.
  • An export factoring company conducts multilingual negotiations
  • An export factoring company takes account of cultural variances.
  • An export factoring company takes account of legal variances.
  • An export factoring can make payments in any currency
  • By using an export factoring it reduces the risk for a UK business on unpredictable interest rate variations.
  • Export factoring companies have a presence in every country in the world.
  • Export factoring companies have a knowledge laws in all countries.
  • The export factor company’s knowledge of overseas markets will provide insight to the creditworthiness of your customers
  • The export factor company’s knowledge of overseas markets reduces the risk of non-payment or bad debts
  • Export factoring can incorporate debtor protection.
  • Export factoring companies to enable a business to trade on standard account terms.
  • Businesses that use export factoring have a competitive edge over those businesses that do not use export factoring.
  • Business owners and directors that use export factoring have increased peace of mind.

What is the difference between export factoring transactions and from import factoring?

The main difference between export factoring and import factoring is an export factoring company acts as a third party to a normal factoring company.

Get an export factoring quote today by calling 0800 597 4757 or apply online to compare factoring companies.