What is export factoring?
Export factoring releases up to 90% of your sales ledger value within 24 hours of an invoice being raised – either domestically or overseas – providing working capital to reinvest into funding your business’ growth and avoiding the delays in waiting for payment experienced when trading on credit.
This international factoring product incorporates a specialist overseas sales ledger management service, with the export factoring company conducting multilingual negotiations and taking account of cultural and legal variances.
What are the benefits of export factoring?
- Funds generated from export factoring can be advanced in the preferred currency, mitigating the risk imposed by fluctuations in exchange rates.
- The international factoring company will have a presence in, and knowledge of, the country you are trading with.
- The funder’s knowledge of overseas markets will provide insight to the creditworthiness of your customers, reducing the risk of non-payment or bad debt.
- Some export factoring companies work within worldwide networks such as International Factors Group (IFG) and Factors Chain International (FCI), providing wider reaching support for you.
- Overseas bank accounts reduce the time and money that is traditionally wasted in accessing international payments.
- Export factoring can incorporate debtor protection to enable you to trade on standard account terms, providing you with a competitive edge and peace of mind.
Is export factoring right for my business?
It is important to ensure you choose a factoring company with the capabilities to suit your particular cash flow needs with regards to the coverage, approach, cost and service levels. Hilton-Baird Financial Solutions' knowledge of the export factoring market means we are well placed to assist and assess the full range of international factoring solutions your business could benefit from.
Please speak to our team on 0800 9774833 today or email info@hiltonbaird.co.uk to find out more about export factoring. Alternatively, get a factoring quote in four easy steps.
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