Foreign Receivables Factoring
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. International factoring companies typically don't take on a client for a one-time deal and they usually require factoring a certain volume of the exporter’s annual sales.
International factoring is helpful for these types of businesses:
- U.S. companies that sell domestic goods (exports) to foreign customers.
- U.S. companies that sell foreign goods to foreign customers.
- Foreign companies that sell goods to other foreign customers.
Export factoring is a complete financial service that combines export working capital financing, credit protection, foreign accounts receivable bookkeeping, and collection services. 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.