Export Finance is designed to be used by Small and Medium Enterprises venturing out in to the foreign trade industry but it can also be used to help out rising business who might need the extra money to start to export but have budget constraints because of delayed customer payments or restrictive dealer payment conditions.
How does it work?
1. First the client will apply for credit for their international client.
2. The export overdraft facility identifies a correspondent factor through our worldwide network in the factoring industry. They then get a credit limit to pay for the necessary transaction.
3. The moment credit score agreement have been obtained, the products may be sent and invoiced within exactly the same way when they would when they ended up being sent to the UK. This specific reduces the risk for the issues connected with rearing and showing characters associated with credit score and marrying these to payments associated with lading and inspection vouchers etc.
4. Within the assistance, overdraft facility liaison can provide the assignment notice for the invoice the client’s own dialect as well as compliant with their country’s lawful jurisdiction.
5. When the products have been delivered, a delivery receipt must be provided and filed with the facility.
6. Depending on the service levels needed, your Correspondent factor may perform task along with verification tests with the client.
7. The drawing of funds is identical with domestic invoice factoring.
8. Depending on the package you apply for, the correspondent can also collect debt from the international customer, again in their own language and law.
9. As with above, the liaison can also receive payment in the customer’s currency.
10. When the payment is settled, the remaining balance of the invoice will be credited back to the client minus the agreed transaction fee.
Now that you know what export finance is, it might just be what you need to help you start exporting.