Export Factor: India Factoring & Finance Solutions Pvt Ltd (India)
India Factoring: India Factoring and Finance Solutions Pvt Ltd is a financial services company specializing in providing working capital solutions by encashing your receivables. India Factoring is a subsidiary of a European bank – FIMBank plc. Malta and it is registered with RBI as an NBFC Factor company. India Factoring is classified under authorized dealer category – III license. We are number one in India in export factoring for 7 years, Number 2 in Asia and number 5 in the world in export factoring.

Import Factor: First Citizens Bank & Trust Company (United States of America)
First Citizens Bancshares, Inc. is a bank holding company based in Raleigh, North Carolina and one of the largest banks in the United States. Its primary subsidiary is First Citizens Bank, which operates over 500 branches in 23 states. A second subsidiary is Silicon Valley Bank, which operates 39 offices in 15 states. CIT Group (CIT), a subsidiary of First Citizens BancShares, is an American financial services company. 

Import Factor: BNP Paribas Factor SA (France)
BNP Paribas Factor is a wholly-owned subsidiary of the BNP Paribas group specializing in factoring and customer and supplier management solutions in France and Europe. BNP Paribas (sometimes referred to as BNPP or BNP) is a French multinational universal bank and financial services holding company headquartered in Paris.  

Explanation of the deal

This deal is based on a well-established trading relationship of over ten years between the seller, one of India's largest home textile manufacturers, and the buyer, Amazon.com Inc., covering both the USA and Amazon EU SARL entities across multiple countries including the UK, Spain, Italy, Germany, France, and Luxembourg. The seller exports products such as bed linen, terry towels, and other home furnishing goods on FOB Incoterms, with payments tied to the E-Invoicing date generated via Amazon’s buyer portal.

India Factoring, acting as the Export Factor, is responsible for ensuring compliance with all regulatory requirements in India. The company uses the buyer’s portal to access real-time details of E-Invoicing, invoice due dates, and payment confirmations, which supports accurate credit assessment and cash management. On the import side, two Import Factors are involved: First Citizens Bank (CIT) manages the USA, while BNP Paribas Factor handles the European operations. BNP Paribas provides full import factoring services for Luxembourg, Spain, Italy, and France, and operates under a non-notified factoring (NNF) arrangement for the UK and Germany.

The deal structure enables fast cash transactions, where payments are received directly from the buyer and used to settle invoices on the factor’s ledger. Payments often arrive in parts from various Amazon entities in different countries, and reconciliation is performed using data from the buyer portal. This hybrid model, involving both fast cash and non-notified factoring for the same buyer across multiple jurisdictions, represents a sophisticated and carefully coordinated cross-border solution.

Why is this deal unique?

This deal stands out due to its multi-jurisdictional structure, involving more than one Import Factor managing different regions for a single buyer—Amazon. BNP Paribas Factor handles full import factoring services for Luxembourg, Spain, Italy, and France, while also providing non-notified factoring for the UK and Germany. Payments are often received in parts from various Amazon entities located in different countries, adding significant complexity to the reconciliation and settlement process. Furthermore, the deal covers a high volume of transactions, many of which are of low individual value, thereby increasing the operational and administrative demands on both the Export and Import Factors.

The uniqueness of this transaction also lies in Amazon’s fully automated and structured resolution processes, which required the factoring partners to adapt to strict digital workflows. To accommodate the operational demands and ensure a seamless experience, bespoke solutions were designed and agreed upon by all parties involved. Central to this structure is the reliance on Amazon’s buyer portal, where the E-Invoicing date serves as the key document for triggering the transaction cycle. This digital integration played a critical role in aligning expectations and execution timelines.

Overall, the deal demonstrates a high degree of coordination, adaptability, and innovation. It effectively integrates fast cash and non-notified factoring for the same buyer across multiple geographies, ensuring that the interests of the buyer, seller, and both factors are preserved. The structure not only delivered significant value to the client but also showcased the ability of the factoring partners to manage complexity at scale.

Export Factor: India Exim Finserve (India)
India Exim Finserve IFSC Private Limited (Exim Finserve) is a wholly owned subsidiary of Export Import Bank of India (India Exim Bank). India Exim Bank, is an Export Credit Agency, wholly owned by Government of India (GOI) and primarily engaged in providing financial assistance to exporters and importers and functioning as the principal financial institution for coordinating the working of institutions, engaged in financing export and import of goods and services, with a view to promoting India's international trade. Exim Finserve, a financial services company, specialises in working capital solutions through the Factoring product. Exim Finserve offers one stop solutioning around receivables finance solutions for the Indian exporters. Exim Finserve provides innovative solutions, driven by a proactive management style, sound understanding of the key credit issues and a thorough understanding of market practices.

Import Factor: First Citizens Bank & Trust Company (United States of America)
First Citizens Bancshares, Inc. is a bank holding company based in Raleigh, North Carolina and one of the largest banks in the United States. Its primary subsidiary is First Citizens Bank, which operates over 500 branches in 23 states. A second subsidiary is Silicon Valley Bank, which operates 39 offices in 15 states. CIT Group (CIT), a subsidiary of First Citizens BancShares, is an American financial services company. 

Import Factor: Credit Agricole Leasing Factoring SA Niederlassung Deutschland (Germany)
International expertise, customized solutions, and quality service: These strengths, among others, have made Crédit Agricole Leasing & Factoring the number one in import factoring and one of the leading providers of export factoring in Germany. In Germany, the unit has operated as Crédit Agricole Leasing & Factoring SA – Branch Germany since September 2022. It emerged from the merger of Eurofactor GmbH and the newly founded Crédit Agricole Leasing German Branch in 2021 and has since been a branch of its parent company, Crédit Agricole Leasing & Factoring SA, in Paris. Crédit Agricole Leasing & Factoring offers leasing and factoring from a single source and is active in all corporate segments – from small and medium-sized enterprises to listed companies. Both types of financing have become an integral part of the financing mix of medium-sized and large companies and have experienced a steady upswing in recent years due to the valued off-balance sheet advantages and their highly flexible application.

Explanation of the deal

A garment manufacturer in India is supplying to multiple entities of a global conglomerate spread across USA, UK, EU and Japan with business relationship exceeding 7 years and limit requirement of USD 3 Million. Sales of the Supplier to the entity based in USA was covered with First- Citizens Bank & Trust Company as IF and sales to entities based in Europe was covered through Credit Agricole Leasing & Factoring SA as IF, with payment from all the Buyer entities coming to India Exim Finserve- EF directly. Underwriting for exports to entity based in Japan (which was a smaller limit) was done through trade credit insurance. Within just over a couple of months of operationalization of the limits, almost 100% limit in case of USA- based entity and 80% limit in case of Europe- based entities has been utilized. With flow of fresh large orders, the Supplier is now looking to further increase the limit, and with support of both out partner Import Factors & flexibilities offered by the FCI two- factor model, we are confident of offering timely non-collateral finance with 100% credit protection. 

Why is this deal unique?

India Exim Finserve is a new entrant in export factoring business, having been incorporated in 2023 at GIFT City- the first offshore financial free zone in India. Having started our active factoring operations only in 2024, with an initial small capital base, catering to the large group exposure requirement was challenging due to Regulatory Counterparty thresholds. The constraint was a blessing in disguise, which gave us an opportunity to collaborate with two Import Factors, coupled with a small pie of trade credit insurance, thereby stitching together a unique solution for the Supplier. Both the Import Factors patiently guided and supported us with the specific requirements for their respective geographies.  

Also, despite multiple underwriters, with adoption of indirect payment mechanism to Export Factor, collection was ring fenced and at the same efficient from Supplier’s perspective.  

Not only that the support received from both the IF i.e. First Citizen Bank and Credit Agricole in helping us on board the US importer was immense. Both the import factors helped Export Factor in understanding how its digital portal works, how to get the access right etc. The IF’s experience of dealing with the well-established importer came in handy.  

Export Factor: TEB Faktoring (Türkiye)
Whether SME or multinational corporate, fast and easy domestic and international factoring solutions for all companies are at TEB Factoring. Founded in 1997 as a subsidiary of the Turkish Economy Bank, TEB Factoring is one of the leading companies in the factoring sector in Türkiye. Since its establishment, it has become one of the sustainable and reliable financial partners of its customers with its domestic and international factoring services, supporting companies to grow and develop their businesses domestically and internationally with its experience, customer-focused, fast and easy solutions. TEB Factoring provides effective cash management and additional working capital, while you do not have to deal with your receivables, and you can focus more on growing your business while making early collections and more profitable sales. The main advantages of working with TEB Factoring, which has been selected as the best export factoring company in the world 7 times by the world's largest international factoring organization FCI, of which it has been a member since 1998, and has a qualified and experienced staff.

Import Factor: BNP Paribas Factor SA (France)
BNP Paribas Factor is a wholly-owned subsidiary of the BNP Paribas group specializing in factoring and customer and supplier management solutions in France and Europe. BNP Paribas (sometimes referred to as BNPP or BNP) is a French multinational universal bank and financial services holding company headquartered in Paris.  

Explanation of the deal

We started in end of the September 2024 with BNP PARIBAS FACTOR SA and as a result of this deal, our factoring business volume realized as 3.241.666 € within 3 months for the Spanish Buyer. For the year 2025, turnover reached to 4.083.215 € as of today. We expect to this volume to EUR 15.000.000 in 2025 in two-factor system within FCI. We gained 1.000.000 € funds in use with this deal. Last year we convinced them to work through two- factor system in FCI.  

Why is this deal unique?

Customer in Türkiye is an SME segment customer in Turkey, not very experienced in export financing solutions. We provided online and onsite detailed explanations and presentations to the Customer and 24/7 advisory services at each step of transaction in order to improve customer’s export Factoring awareness on both product and process sides.  

The Spanish Buyer, did not want to pay to the account of BNP FACTOR SA through two - factor system due to the operational difficulties. However, we got some special approvals from BNP PARIBAS FACTOR SA for the indirect payment system and we convinced them to work under import factor guarantee. BNP FACTOR SA, supported the deal by approving indirect payment structure.  

There were many small invoices in this deal and this caused operational difficulties in the beginning stage, however we produced tailor-made solutions in terms of operational optimization both for the customer and us.   

Export Factor: Prime Bank PLC
Prime Bank PLC is a top-tier second generation local commercial bank in Bangladesh established in 1995, the bank’s operational footprint is spread all over the country with 146 branches. Prime bank PLC is best known for its expertise in Corporate and Institutional banking and its innovative digital banking services. A leading private commercial bank in Bangladesh. 

Import Factor: UniCredit Factoring Italy
UniCredit Factoring Italy, part of UniCredit Group, is a company specialized in the offering of Factoring products and services. With its presence on the market for over 50 years, UniCredit Factoring is one of the organizations which had the greatest impact on the development and spreading of Factoring services in Italy. 

PLEASE EXPLAIN THE DEAL AND ITS STRUCTURE 

The deal was completed under a Two-Factor Model, with Prime Bank PLC as the Export Factor and UniCredit Factoring as the Import Factor. UniCredit Factoring Italy provides risk protection and receivables management solutions for the buyer, while Prime Bank, in addition to its Export Factor role, provided financing support to the seller. The whole transaction process was done in the EDI platform of FCI, which has been very smooth and efficient. 

PLEASE EXPLAIN WHY THE DEAL IS UNIQUE AND PROVIDE SOME HIGHLIGHTS OF ITS COMPLEXITY 

Factoring is a new product in the Bangladesh market. The Central Bank of Bangladesh issued a policy guideline allowing international factoring only in 2020. As such, the seller did not know much about factoring, so creating customer awareness was the primary challenge that Prime Bank had to take from the beginning. Secondly, arranging credit coverage for the seller of an unknown market was another challenge where UniCredit Factoring played the key role. The seller wanted liquidity/ financing at a competitive rate under the credit cover, which was arranged by Prime Bank, creating a new product category and separate limit line. UniCredit Factoring underwriting team has worked with credit insurer and made its assessment and analyzes, then provided credit limit to export factor which the seller was satisfied. Timeline to start this deal was quite tight, however, putting all possible resource, we finalized this task. 

Export Factor: Taishin International Bank 
Taishin, established in 1992 and has been a member of FCI since 2000, is one of the Top 3 banks in Taiwan in terms of Factoring volume. IF coverage on all Taiwanese background enterprise around the world and welcome any funded/unfunded tailor made case. 

Import Factor: Wells Fargo Bank 
WFB is one of the largest bank-affiliated factors in the United States, with 60+ years of experience and extensive trade risk knowledge. WFB is a subsidiary of Wells Fargo & Company (NYSE: WFC); WFC was established in 1852 and carries an A+ rating by Fitch (A2 rating by Moody’s, A- rating by Standard & Poors), respectively. Wells Fargo won the 2nd Import Factor of the Year Award in 2023. 

PLEASE EXPLAIN THE DEAL AND ITS STRUCTURE

Goods: Synthetic Resin
Years of transactions between seller/buyer: 2
Import Country: United States of America
Terms: O/A 120 days from invoice date

1. Buyer places the order with Seller
2. Seller engages in Factoring arrangement with Export Factor 
3. Export Factor and Import Factor set Credit cover arrangement
4. Seller sends Shipment to Buyer
5-1. Seller assigns invoices to Export Factor
5-2. Export Factor assigns invoices to Import Factor
6. Buyer makes indirect payment method to Export Factor

PLEASE EXPLAIN WHY THE DEAL IS UNIQUE AND PROVIDE SOME HIGHLIGHTS OF ITS COMPLEXITY 

1. After Due Diligence, we found the contract contained a Ban on Assignment clause* which prohibits assignment of receivable. We have to get the Buyer’s consent and remove the ban on assignment clause. In this case, Buyer doesn’t agree to remove this clause.
2. We discussed with Import Factor (Wells Fargo) on this issue. Wells Fargo immediately reviewed the case and specific clause in the contract, confirmed that State of Pennsylvania where Buyer is domiciled has adopted UCC 9-406(d)(1) provision, therefore EF doesn’t need to obtain Buyer’s prior written consent for assignment.
3. While Credit Insurance competing with Two Factor system on 1) lower commission charge, and 2) Risk-Weighted Advantage. In this case, both factors successfully solve the legal obstacle, with the advantages of 100% credit coverage and IF’s professional legal assistance. 

Export Factor: TEB FAKTORING A.S. 

Import Factor: BNP PARIBAS COMMERCIAL FINANCE LTD / CREDIT AGRICOLE LEASING FACTORING SA NIEDERLASSUNG DEUTSCHLAND 

Seller: DAİİCHİ ELEKTRONİK SAN. VE TİC. A.S., which was established in 2002 with 100% Turkish capital, produces in-car multimedia systems, speakers, radio/AVN and rear-view cameras. 

Buyer: STELLANTIS GLIWICE SP ZOO is the biggest customer of DAİİCHİ ELEKTRONİK SAN. VE TİC. A.S (it is the Group formed after the merger of Fiat Chrysler Automobiles (FCA) and PSA Group) (Peugeot, Citroen, DS and Opel) 

TEB Faktoring A.S.(EF) has received credit limit – 2 Mio € for the buyer STELLANTIS GLIWICE SP ZOO located in Poland from the import factor BNP PARIBAS COMMERCIAL FINANCE LTD (IF) in 2023. We started in July 2023 with BNP PARIBAS COMMERCIAL FINANCE LTD and reached to 9.185,885 EUR within 6 months for the buyer STELLANTIS GLIWICE SP ZOO. Since BNP PARIBAS COMMERCIAL FINANCE LTD does not give service as import factor from the end of 2023, the new import factor CREDIT AGRICOLE LEASING FACTORING SA NIEDERLASSUNG DEUTSCHLAND approved 5Mio.EUR limit for the buyer STELLANTIS GLIWICE SP ZOO within 2024 and we will work with CREDIT AGRICOLE LEASING FACTORING SA NIEDERLASSUNG DEUTSCHLAND for this business. 

PLEASE EXPLAIN THE DEAL AND ITS STRUCTURE 

DAİİCHİ ELEKTRONİK SAN. VE TİC. A.S., has been working with this Group for 15 years, DAİİCHİ ELEKTRONİK SAN. VE TİC. A.S exported around USD.60m for the year 2023 to STELLANTIS GLIWICE SP ZOO (including sales to Tofaş and FCA). The seller DAİİCHİ ELEKTRONİK SAN. VE TİC. A.S, applied us last year in order to get guarantee and finance for the receivables of STELLANTIS GLIWICE SP ZOO. We granted 2Mio.EUR credit limit for STELLANTIS GLIWICE SP ZOO through BNP PARIBAS COMMERCIAL FINANCE LTD and we established finance limit for the seller DAİİCHİ ELEKTRONİK SAN. VE TİC. A.S under import factor guarantee. 

PLEASE EXPLAIN WHY THE DEAL IS UNIQUE AND PROVIDE SOME HIGHLIGHTS OF ITS COMPLEXITY 

Since the big OEM’S doesn’t accept to pay to Factoring accounts, we convinced the DAİİCHİ ELEKTRONİK SAN. VE TİC. A.S and STELLANTIS GLIWICE SP ZOO for two-factor system in FCI. STELLANTIS GLIWICE SP ZOO pays all invoices to TEB Factoring BNPP Marseille account. Total collection amount was 11Mio.EUR in last 6 months. Since, the manufacturing facilities are realized in China, and exports are made through transit trade, the import factors covered this complex structure. 

Export Factor: Santander Factoring, Poland 

Import Factor: BNP Paribas Factor, France

A challenging case with the humanitarian aid aspect in the background and extraordinary operational risk involved. The Factors found a way to manage the risk related to the trade and embed this complex operation under two-factor framework. 

Explanation of the deal

Seller: a company established in Poland in 2005 producer of poultry, pork and beef elements and exports its products to over 100 countries around the world. 

Buyer: non-profit organization, Italian branch of the world’s largest humanitarian organization, related to the United Nations. The trade relates to the canned food (meat and non-meat products) delivered to the buyer in the territory of Ukraine within the humanitarian aid.

Why is this deal unique?

1. Single risk transaction. Relatively short commercial relationship – limited payment track record. 

2. Shipment provided out of the buyer’s country, to Ukraine within the humanitarian aid. 

3. Delivery destinations are located in the territory of the heavy warfare – very high operational risk. 

4. Both Factors had to get an internal approval of their Compliance units to deliver the case. 

5. The operational risk aspects were under a thorough analysis on both Factors ends.

6. The findings of the study of the available documentation in respect to the FM. 

7. The buyer’s operational model of its relationship with suppliers significantly mitigates the risk of trade disputes. 

Export Factor: Taishin International Bank, Taiwan

Import Factor: Mizuho Factors, Japan

Explanation of the deal

This case shows many good demonstrations of Two Factor structure:

1. Official Buyer entity is located outside of its origin and in a market not so active engages with IF business.  However, FCI platform solves this problem with IF from other country.  
2. IF ‘s client network not only helped EF to establish Credit Limit, but also able to communicate with Buyer openly and directly.  
3. A clear comparison to all FCI members the important value of FCI Two-Factor structure.  Two Factor Structure works far better and faster than Credit Insurance ever could.

Why is this deal unique?

1. While Credit Insurance competing on this case with 1) lower commission charge, and 2) Risk-Weighted Advantage if insured under Credit Policy.  In this case, we successfully persuaded client to adopt Two Factor structure, with the advantages of FCI 100% coverage and IF’s cross border assistance from Japan.
2. Buyer is an International Procurement Office (IPO) with JP background located in Hong Kong with limited working capital, and FCI HK members are not actively engaged in Import business.  So we reroute to the Buyer's parent group in JP and sought assistance from Mizuho.  With Mizuho's cross border credit cover ability and also strong client networks in JP, we successfully obtained the credit cover with competitive pricing and win the deal.

Export Factor: India Factoring and Finance Solutions

Import Factor: BNP Paribas Factor, France

Structural deal , having multiple lags of complexity 

Explanation of the deal

Seller: one of the leading manufacturers and exporters of terry towels in India 

We are providing an export factoring non-recourse limit of US $25 million to one of the renowned  conglomerate groups in North India (listed on the Indian Stock Exchange) and one of the leading market leaders in the home textile segment . This client has routed turnover of more than US $100 million since the inception of our relationship. It includes Deal between the parties as FOB Incoterms, The buyer & seller annual contract deal also includes the market expenses (which has to be borne by the seller) as part of the overall contract value and This company has a dispatch from different factory locations to the buyer and thus, they have different Goods and Service Tax (GST) registration numbers

Why is this deal unique?

Three key learning :

1) To understand basic principles behind structured financing, 

2) To understand some of the challenges as risk to the lender, but go-ahead with preconditions includes reliable and sustainable cash flow, political stability, bankable deal and manage the risk with ring fencing, and  

3) To understand the basic mechanics and risks involved with structuring financing.

Export Factor: Banco Monex Mexico
Import Factor: The CIT Group / Commercial Services

Back-To-Back International Factoring Modality with Mexican Exporter and American Importer

Explanation of the deal

Banco Monex's Client, with more than 10 years of relation, entered into “reorganization bankruptcy” known as Chapter 11, suspending all its payment obligations. ​The company needed liquidity to face all the payment obligations but was unable to apply for any loan or financial products. ​

Banco Monex proposed a structure to provide financing on a non-recourse basis. The proposal consisted in a B2B (Back-to-Back) International Factoring modality, in which CIT evaluated and approved credit cover for 4 American Buyers (USD 2.5 million) of the American Subsidiary, as follows.​ The B2B structure implied new/additional legal documents, including a Side Letter signed by Banco Monex & CIT, as well as some other steps. Banco Monex has operated on more than 4 cases of B2B modality with CIT.

Why is this deal unique?

• Authorizing internally a Seller who had just come out from a Chapter 11.​
• Onboard the two Sellers (Mexican & American) to the legal structure (Factoring Agreement) in order to bind them both, ​
• Elaborate on new legal documents from the Import and the Export Factor's side, and ​
• Understand how the UCC works and find a law firm to work with in this matter. ​
• It is unique because there are no Mexican Bank financing invoices issued outside Mexico without granting a traditional credit line to a Mexican Seller. 

Export Factor: Kuveyt Türk Katilim Bankasi A.S.
Import Factor: ABN AMRO Asset Based Finance N.V.

Seller: A Plastic supplier of Stretch Film in Turkey
Buyer: Based in France

Explanation of the deal
The deal is completed under the Islamic Factoring context. After the completion of the onboarding process with the import factor by the signing of the Supplemental Agreement, we have focused on seller selection. Following the b/m criteria we have both fulfilled factoring and basic Islamic principles;

- Order-based approval is where an order or sales contract is approved by the factor. Islamic Factors are involved in the trade at the early stages checking the seller’s nature of business including sales conditions, products and services in line with the Islamic principles before accepting the business.

- The receivable is related to a bona fide sale of goods or rendered service. Islamic transactions are based on good faith. Islamic Factors mediate the trades arising from halal goods and genuine trade. 

Why is this deal unique?

• The first international transaction under the scope of the Supplemental Agreement for Islamic International Factoring in FCI since the product has been released. ​
• The effort and the hard work that we put into realizing this brand-new product.​
• Kuveyt Turk believed in this product and dedicated a whole team from IT developers, risk managers, Operations, Financial Institutions, accounting etc.​
• We have negotiated with tens of factors and introduced the product to factors in order to have a correspondent relationship and encourage them to cooperate with new Islamic members of FCI. 

Export Factor: Standard Chartered Bank Korea Limited
Import Factor: BNP PARIBAS Factor France

Seller: A Movie Studio in Korea
Buyer: A Major TV Streaming Platform in the USA

Explanation of the deal

The seller produces very successful Korean TV series or dramas that reach a global audience thanks to the buyer’s presence all over the world. The buyer ordered a large number of dramas to be delivered over the next years. High production costs combined with the long payment terms (up to two years) result in a significant strain on its cash flow.​ 

Standard Chartered Bank decides to offer the opportunity to BNP Paribas Factor, providing very detailed information on how receivables are issued by the seller and how the buyer pays by instalments with terms up to two years. The highly unusual features of the deal are discussed at length between both factors.

BNP Paribas Factor's Insurer approved the risk structure and in turn confirmed the full credit cover (in excess of $40 million) to Standard Chartered Bank, making the deal possible. Having a 100% credit cover on such a large and complex operation proves to be a decisive success factor. Once again, FCI’s famous two-factor system shows its relevance.

Why is this deal unique?

• Single buyer exposure with a significant credit cover (over $40 million).​
• Unusually long payment terms (up to 2 years). ​
• Need for a 30-day grace period in case of reduction/cancellation of the credit cover.​
• A specific Supplemental Agreement was signed between the Export Factor and Import Factor.​
• The buyer has a ban on the assignment that had to be waived with the seller’s support.​
• No factoring commission is charged by the IF, only an annual fee.​
• It is the first cross-border factoring transaction based on K-dramas/TV series with global OTT(over-the-top) platform.   
• It is structured deal with tailored solution to enable payment terms up to two years.

Export Factor: India Factoring and Finance Solutions (IFFS)
Import Factor: The CIT Group / Commercial Services

Seller: Vendors of electronic PCB boards in India
Buyer: Global MNC buyers across various sectors which use PCBs as essential components

Explanation of the deal

IFFS is providing an Export Factoring Non-Recourse facility to one of the leading Electronic Manufacturing Services (EMS) Manufacturer in India. EMS is a sunrise industry. With the current geo-political situation immediately preceded by a global pandemic, the supply chain issues have led to a tremendous shortage of Semi-conductors / chips forming essential components for most Electronics Industry. Consequently, our client is addressing a mission-critical gap across the global supply chains on the Electronic chips front in EMS space. The client supplies leading MNC buyers across the world. Most sectors need chips / printed circuits as an essential component for the final product.

Why is this deal unique?

• Unlike regular exports, here India Factoring finances from the post-shipment stage itself rather than waiting for acceptance from the buyer, which enables much earlier working capital facilitation for the client.
• Complex deal structure & require lots of monitoring & control mechanism.​
• Even with marginally higher costs, the customer understands the optimal cost of working capital including a de-leveraged balance sheet on top of risk mitigation. Moreover, under IFFS advisory on ring-fenced structuring, the customer can negotiate well with the buyer including amending the agreement with favourable terms in case of exigency.
•  

Export Factor: TBC Bank
Import Factor: ArmSwissBank

Seller: A Cocoa Company in Georgia
Buyer: A Chocolate Company in Armenia

Explanation of the deal

With the support of the EBRD and FCI, TBC Bank and ArmSwissBank supported cross-border factoring transactions for their customers' ongoing trade. This transaction relates to international trade between an Armenian importer and a Georgian exporter. The buyer imports cocoa mass from the seller for production and the further export of high quality chocolate.

Why is this deal unique?

The first cross-border factoring transaction, backed by an EBRD guarantee via the FCI platform.​
Challenges:​

• Make product change smooth for customers.​
• Ensure product remains affordable for companies.​
• Transaction structuring.