Export Factoring in all its different formats has the potential to help your business expand and succeed further WITHOUT the need to put up REAL ESTATE SECURITY (in the majority of cases). Unlike domestic factoring, export factoring tends to be more cumbersome and more expensive because of the additional complexity of international transactions:

1. Different currencies,
2. Different languages,
3. Different legal systems,
4. Different business cultures,
5. Different time zones,
6. Different political systems plus
7. ................ the added time to ship product across the water .

As result of the many different and diverse features of international trade there is more to go wrong with a finance facility such as export factoring, and those factoring companies providing export factoring finance consider it to be higher risk than traditional domestic factoring. With domestic factoring the factoring companies can easily check on their security (i.e. the invoices you raise) by simply talking to your customers. With export factoring, however,it is far harder for them as their relationship with your end customers is "hands-off".

Equally, the risks of export factoring have been made worse more recently by the effects of the current global financial crisis internationally with most major trading countries now in some form of recession.

As a result, in the MAJORITY of cases EXPORT FACTORING will be on a DISCLOSED basis - i.e. your overseas customers will know about the factoring companies being involved in the financing of your business. That said, for companies that have consistently returned good results, and have significant volumes of export business (usually in excess of $5m a year) there are confidential export factoring facilities available - but be aware the credit criteria is tough and you need to have excellent control systems in place.

If you want to get a better idea of how export factoring works in practice then please continue through this export factoring micro-site and go to the next section

Negative Cash Flow of Exporting Without Export Factoring.

If you want to talk with INDEPENDENT, EXPERT ADVISERS with OVER 23 YEARS experience in the Factoring Finance business (including the LAST RECESSION) then you can by-pass all the free assistance and information in this micro-site and contact us directly below on :

1300 79 30 60

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