Import/Export
Financing
International factoring is a
fast growing method of finance that is taking the place of many
more typical letter of credit transactions. One of the benefits
of international factoring transactions is the speed with which
they can be put together.....generally within 48 hours. A typical
international factoring transaction includes four parts. First:
• The exporter signs a factoring contract with an export
factor in its own country. Under the terms of the agreement,
the exporter assigns all export receivables to the export factor.
The export factor is responsible to the exporter for all aspects
of normal factoring service.
• The export factor selects an international factor as
correspondent to act as import factor in the country to which
the exports are going. The receivables are then reassigned by
the export factor to the import factor.
• The import factor will establish credit lines for each
of the importers. The credit lines will be for a specific amount
and terms of sales. The export factor confirms the details of
the credit lines to the exporter.
• After the exporter ships the goods and sends an invoice
to the importer, the import factor handles the collection of
the receivable and the prompt payment of the proceeds to the
exporter's account at the export factor.
From start ups to more established businesses, if you trade
with other firms on credit; if your business deals in the UK
or overseas; if your cash is tied up in vital equipment or you
just want your cash to work harder for you, Duke & Lord
can make it happen. |
