What are the benefits of Export and Import Factoring?

Shipping trucks

One of the greatest advantages of export and import factoring is that it allows exporters to trade on open account terms without risk.

For exporters our international commercial finance service eases much of the credit and collection burden created by international business. By outsourcing the credit function, it means that you can convert the high fixed cost of operating an international credit department into a variable expense. 

Commissions paid to us are based on sales volume. This means that costs fluctuate with actual sales giving lower operating costs during slow sales periods. It means that you can offer foreign customers competitive open account terms. It relieves you of the time-consuming administrative burden of approving credit and collecting export sales. Financing is provided by means of advances against outstanding accounts receivable.

In summary, international commercial finance provides the following benefits to you:

  • Increased sales in foreign markets by offering competitive terms of sale;
  • Protection against credit losses on foreign customers;
  • Accelerated cash flow through faster collections;
  • Liquidity to boost working capital;
  • Enhanced borrowing potential and an opportunity to make use of supplier discounts;
  • Lower costs than the aggregate charges for Letter of Credit transactions.

For your customers the advantages of open account trading are obvious:
  • Purchase on convenient open account terms;
  • No need to open Letters of Credit;
  • Expanded purchasing power without blocking existing lines of credit;
  • Orders can be placed swiftly without incurring delays, L/C opening charges, negotiation charges, etc.

We have an international factoring network with more than 250 members across 66 countries. 

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