Benefits
no-border
What are the Benefits for Exporters & Importers?
The benefits of international factoring for exporters include:
-
Working Capital improvement.
- Access financing at better conditions, benefitting the creditworthiness of the buyer.
- Reducing time-consuming credit administration and costs.
- Reducing risk while offering foreign customers competitive open account terms.
- Expanding turnover by offering flexible payment terms.
- Strengthening of revenues by improving DSO.
- 100% credit protection against bad debts and customer insolvency.
- Better borrowing potential and an opportunity to make use of supplier discounts.
The benefits of international factoring for importers include:
-
Improvement of working capital due to later settlement of payables (DPO extension).
-
Payment to local accounts, no additional bank charges.
-
The opportunity to buy goods using convenient open account terms.
-
Expanded purchase power without using existing credit lines.
-
Removing the need to open letters of credit, no administrative burden and costs, the ability to place orders swiftly.
-
Communication with a local bank/factoring company regarding disputes or delays of payments.
What are the Benefits for Export Factors & Import Factors?
Benefits for Export Factor
-
Direct monitoring on the receivables portfolio by the Factor/Bank
-
Import Factor takes credit risk on the buyer
- Import Factor performs collections / dunning procedure
- Import Factor takes legal action on buyers if required
- Export Factoring offer to seller without setting up operation in a large number of countries
- Enhanced collateral control
- Transactions exchanged electronically via edifactoring.com, reduction of manual activities.
Benefits for Import Factor
-
Enhanced payment experience with buyers from cross-border purchasing
- Additional source of revenues from Import Factoring services (risk assumption + collection);
- Reverse Marketing opportunities
- Additional business volumes through Correspondent Factoring
- Increase of buyer portfolio
- Transactions exchanged electronically via edifactoring.com, reduction of manual activities.