International Factoring - Benefits | FCI
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International Factoring - Benefits
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, 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, reduction of manual activities.
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