Export Factoring:
This is a factoring model where the exporter receives either or all of intelligence, guarantee, collection and financing services for the invoices issued to their buyers residing overseas.
Guarantee Service: Means the guaranteeing of the assigned accounts receivable by the factoring company and/or correspondent factoring company up to the limit allocated to the buyer against the risk of the buyer's insolvency or bankruptcy.
Collection and Receivable Management: Means monitoring and collection of the accounts receivable and providing reports to the seller.
Financing Service: Means advance payment of a certain proportion of the assigned receivables to the seller before maturity within the limits determined by the factoring company.
Benefits of Export Factoring
Exporters are able to:
- Access reliable intelligence helping them have up-to-date information on the buyer's financial power and creditworthiness in the international market.
- Enter new markets without risks.
- Have an efficient cash flow, and increase their sales.