Export financing allows businesses to receive an advance on the cash they are owed by submitting their outstanding invoices to a factoring company.
Once payment terms are finalised and an invoice is drawn up, this outstanding payment is passed on to the factoring company for review. As soon as the invoice is cleared, the factoring company releases up to 100% of the invoice value.
You receive the cash you need upfront that can be used to purchase more stock, pay for shipping, or simply cover expenses. The factoring company is then in charge of chasing after your international invoice. Once the debtor pays the outstanding amount, the lender will release the remaining funds, minus any deductible factoring fees.
International suppliers often need working capital in order to finance the orders they receive. Export factoring allows companies to engage in international trade as effortlessly and securely as possible.