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The Export Factoring Process
Using an Export Factoring facility, you will liaise with a domestic Factoring Company (The EXPORT FACTOR) . They will liaise with their partner Factoring Companies across the world (IMPORT FACTORS) - using established worldwide factoring networks. The various Factoring Companies work closely with each other - one acting as the Export Factor (for exporters) and the other acting as an import factor (in the country of your customers). Here's how it works:
1. You receive a Purchase Order from your overseas customer
2. You submit credit details of your proposed overseas customer to your local Factoring Company for credit approval.
3. They liaise with their counter party (the "import factor") in the overseas country of your customer to get the local credit opinion on your customer
4. A Credit Approval (usually supported by a credit insured limit) is given to the local Factoring Company who passes the information on to you.
5. You ship the goods to your customer.
6. You pass the details of the shipping documents (representing proof of shipment) together with the invoice to the local Factoring Company.
7. The local Factoring Company advances you up to 85% against the face value of those invoices up front (usually in your local currency).
8. Your overseas customer is chased by the overseas Factoring Company(the import factor), who receives payment and remits the money to the local Factoring Company (the export factor)
9. The remaining unfinanced portion of the invoice ( i.e. 15%) is then returned to you (less the Factoring Companies' charges of course)
The end result of having an Export Factoring facility in place is that both you and your export customers have POSITIVE CASHFLOW.
If you want to talk with INDEPENDENT, EXPERT ADVISERS with OVER 23 YEARS experience in the Factoring business (including the LAST RECESSION) then you can by-pass all the free assistance and information in our web-site and contact us directly below on :
1300 79 30 60
Our advice and ongoing support is free*
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Alternatively if you wanted us to call you back at a time to suit you, then please complete the enclosed form and we will call you back.
