International Finance Factoring Ė Leading to Greater ProfitsThe world of international finance is a complex one, and when it comes to loans and expenses, youíll definitely want the best option possible. While there are many options available, factoring is by far the most practical solution and the most cost effective.
What is Factoring?
Factoring is a financial solution provided by a company (called a factoring company or factor) that consists of a collection service, accounts receivable bookkeeping and credit risk protection. These companies also provide capital financing services. Before you can avail of this service you need to understand how it works.
Factoring is an agreement between the seller and the factor. Under it, the factor buys your invoices and will take responsibility for the debtorís paying capability. If the debtor is unable to pay for any reason, the factor will pay you, the seller. If the seller and factor are located in different countries the agreement is referred to as international factoring. In other words, factoring is very effective in reducing credit risk as well as collection burden of sales. Under international factoring, credit function is outsourced and an exporter can offset the high cost of running an international credit.
Factor Commission and Other Details
In international finance factoring, the commission is determined by sales volume so it will depend on the sales. If you are an exporter or in any sort of international business, factoring will provide relief when it comes to export sales collecting and credit approval. At the same time, a factoring company makes it possible for you to offer open account terms.
With factoring youíll have the financing you need without having to wait for months to get paid. This is true not just in exporting but in the entire finance industry. With the cash flows assured youíll be able to pursue those expansion projects with confidence. At the same time youíll have the resources to pay for current expenses and have protection against credit losses.
Credit standing is another aspect of factoring that finance companies are taking into account. With these companies you donít have to worry about your credit standing as it isnít an issue. As long as the accounts receivable are legitimate and have no legal issues, youíll receive a percentage of the amount upon purchase. After payment of your client, the factoring company takes their fee and you receive the rest of the money.
In addition, factoring companies are experts when it comes to collecting, and that means youíll have the rest of the balance in no time. Finally, factoring companies charge a very low fee and compared to the benefits you get, the amount you pay is more than compensated for. Because negotiations are quick, you donít have to wait for weeks or months to get the funding your company needs right now.
One of the best international finance factoring companies today is NeeBo Capital. For many years now this Florida based factoring company has been offering professional quality services and very affordable rates, as low as 1.5%, and there are no financials needed.
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
Quick Link to Financial Resources:
|Purchase Order Financing||Accounts Receivable Financing||Asset Based Lending Options|
General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 09/15/2011 What to know when selecting a Factoring Company