Export Factoring enables Exporters to mitigate the Credit Risk on their Customers & unlock their receivables to meet working Capital needs.
Exporting without an Letter of credit (LC) can be a risky business, also export sales may involve credit periods of upto 90 days which blocks your funds. You can overcome these hurdles with the help of export factoring.
Export factoring is a facility whereby the exporter transfers copies of the invoices , and sells its receivables to a factoring company with a facility fee. The factor pays the exporter immediately , exporter does not have to wait for its invoices to be paid. The factor collects the payment from the customer on due date. In other words, export factoring helps an exporter speed up its cash flow.
How it works:
Factors advances funds to the Exporters against Supply of Materials upto about 80-90% of the Invoice value.
Export Factors can undertake risk cover on Customers. Hence, Exporter need not worry about payment default by its Customer.
Factor directly collects payment from the Customer on due date.
Factors pays balance amount to the Exporter after deducting Factoring fees.
Export factoring helps you to finance your international sales.
Export Factoring enables the Exporter to raise Capital from Overseas Markets at Cheaper Rates.
To avail this service, call us or send us your details.