International Factoring
Factoring
International Factoring
We offer international factoring funding to clients anywhere in the world. We will consider international trade finance on any transaction that includes:
U.S. Seller to Foreign Buyer
Foreign Seller to U.S. Buyer
Factoring Funding - Example 1: Foreign Seller to US Buyer
A spanish manufacturer of high quality wine sells container loads to credit worthy U.S. customers (buyers). When we receive invoices and bills of lading that the goods have been shipped to the U.S. buyers, we will wire funds to the spanish manufacturer. This is an example of import/export financing.
Factoring Funding - Example 2: US Seller to Foreign Buyer
A U.S. aircraft aviation parts supplier sells to a Chilean Airline. Goods are shipped by air and all invoices are covered by credit insurance. When the Chilean Airline receives the goods, funds are advanced to the U.S. seller. 60-90 days later the Chilean Airline will wire funds to us. This is an example of an export finance transaction.
In almost all international trade finance cases—whether its import/export financing or an export finance transaction—we will want the goods sold to foreign buyers to be covered by our export insurance policy. Coverage on the export policy is usually an additional 1.5% to the normal factoring charges.
Credit insurance is needed for international transactions due to lenient financial reporting requirements in foreign countries and the difficulty of obtaining quality foreign credit information.