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Home>Export Finance

Export Finance

The Export Finance service is all about helping you to improve the efficiency of your export business, while reducing the risks. You can lower your cashflow pressure almost from day one, by cutting-out complicated administration and improve credit checking and credit controls.

Through our international Factoring service you get up to 90% of your invoice value paid as soon as you raise it, easing cashflow worries. The balance (less factoring fee) is paid on settlement of your customer. With Bad Debt Protection you can get the reassurance you need to confidently grow your exporting business, and help to safely move away from Letters of Credit to standard account terms, simplifying exporting for you and your customers.


Export Finance – how does it work?


You raise an invoice to an overseas customer in the normal way. The Export Finance service then pays you up to 90% of the invoice value. If you choose international Factoring service, the service include taking responsibility for collecting the money you’re owed – and then pay you the balance less an agreed fee, once the money is in. If you prefer to use international Invoice Discounting service, you collect the money and then the service pay you the balance once funds are cleared.

The International Factors Group (IFG), international Factoring service works through associate companies based in the country of your overseas customer, overcoming many of the potential cultural, language and currency issues in one go. With Bad Debt Protection you can cover your business against the insolvency of customers or non-payment of undisputed debt.

The associate company also credit checks your customers locally, helping you to avoid bad debts and covering you against customers who fail to pay.

As the trend away from Letters of Credit towards standard accounts continues, the Export Finance service can play a vital role in easing pressure on cashflow, whilst helping to minimise the risks associated with late payments and bad debts from foreign customers. Recovering money and chasing potential bad debts can be much tougher in a foreign language, in a country with different ways of doing business and a whole raft of different techniques for stalling payments. Export Factoring can provide the solution.

 

The benefits include:

  • Unlocking the cash tied up in your invoices, giving you the flexibility to grow your export business

  • Enjoying up to 90% of your invoice value upfront, with the balance paid on collection, less our agreed fees

  • The choice of Factoring or Invoice Discounting to suit your own set-up 
    International Factoring includes local collection in your customer’s country, removing language and cultural barriers

  • The option to include Bad Debt Protection and enjoy expert credit checking, while enjoying 100% cover on Factoring and 95% cover on Invoice Discounting.

  • Less cost and less time consuming to set up than Letters of Credit

  • More cost-effective and straightforward for your customers, reducing barriers to new business

  • All the benefits of the service including a personal Relationship Manager and 24/7 online access to your account

  • Potential to negotiate better terms with suppliers

  • The ability to expand your exporting business with less financial risk

  • A professionally run export credit service, without employing specialist staff

  • Having a flexible finance facility that grows with your business 

With Export Finance, funding is available as soon as you invoice clients; you no longer have to chase in money in a different languages under different business laws; you can offer standard open account trading, with a much higher degree of safety – particularly if you use our Factoring option combined with Bad Debt Protection.

 

Is it right for your business? It could be if:

  • You’re a registered company

  • You have an annual turnover between £100,000 and £50m

  • You sell to overseas customers and issue invoices with trade credit terms ranging from 14 to 90 days

  • You have clear documentation and an established delivery system

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