International factoring helps U.S. companies that sell domestic goods to foreign customers and U.S. companies that sell foreign goods to foreign customers. International factoring companies typically don’t take on a client for a one-time deal and they usually require a monthly sales volume minimum.
International factoring improves your cash flow because you don’t have to wait 30, 45 or 60+ days to collect your receivables. You get the cash quicker so you can pay for supplies, payroll and other operating expenses.
Export factoring is a complete financial service that combines export working capital financing, credit protection, foreign accounts receivable bookkeeping, and collection services.
Most financial institutions don’t view overseas receivables as eligible collateral for a loan, but international factoring companies offer working capital solutions for foreign receivables.
Most international factoring companies provide non-recourse factoring, so that if your customer cannot pay due to insolvency, the factoring company offers 100% insurance against non-payment.