Export Factoring - Minimise bad debt risks with credit protection - How to avoid currency fluctuation and invoice problems when exporting.

For an agreed percentage of the invoice value you can receive immediate cash for your export receivables. Export Factoring can be attained with 100% security for your exports to most countries in the EU. Export factoring can be a two edged sword, differences in laws, customs and language can cause problems. A good export factoring company or broker can reduce these worries. You should get prompt payment and you should get all the help and advice needed.

A complete export factoring package should provide sales ledger management handling all your ledger administration and debt collection jobs through overseas factor partners, saving time and overhead costs.

Features of export factoring

Protection is available against currency fluctuations and you can choose to paid in your own currency but receive your invoice in another, many customers prefer to be invoiced in their own currency.

Export factoring Requirements

Europe: Annual turnover of at least £100,000. Including UK Sales.
Outside the EU: Annual turnover of £500,000 This Applies to the U.S

Export Factoring credit protection

Most factors insist on you purchasing credit protection, this can minimise the risk of bad debt. Export Factoring is less than the cost of export finance, but is higher than the cost of UK factoring.
For an agreed percentage of the invoice value you can receive immediate cash for your export receivables.

Disadvantages To Export Factoring

There is a minimum factor volume level that an exporter may have to achieve product quality or performance disputes can prove troublesome if they exist
Making sure the debt instruments are validly prepared is your responsibility

The loss of control over customer management can harm your existing relationship

Export factoring can cost more because 2 factors are involved.

Factoring & Invoice Discounting | Invoice Discounting | Recourse & Non Recourse Factoring | Export Factoring