International trade has never been bigger than it is today. With so many players at work in different countries and so many products and transactions crisscrossing the globe, financing challenges have increased. Even though online universal payment methods are becoming more standard, importers and exporters can still face a major cash flow crunch when they must wait weeks and months to receive payment for their goods from their customers overseas. Importers and exporters factoring can assist you with your financial struggles!
The popular cash flow solution of importers and exporters factoring is selling unpaid invoices at a discount to a factoring company. The funding method first appeared as reliable source of funds for ancient traders and merchants in the Middle East and yet it remains a financing method of choice among international traders today.
How does Importers and Exporters Factoring work?
Importers or exporters can reap great financial rewards if they can survive the delay in customers’ payments for goods. However, many business people in this field face significant financial challenges. If you are an importer or exporter of goods, factoring your accounts receivable could be a valuable financing solution for you.
Importers and exporters factoring is a popular low-cost funding solution for people in this industry. The factoring company will generally assign a correspondent in the country where goods are being shipped as well as research the credit history of the buyer so that the transaction can happen seamlessly without having to open lines of credit. When goods are shipped, then the factoring company is notified and they can advance a portion of the invoice value to you.
When you choose Interstate Capital, one of North America’s leading factoring companies, as your import export factoring partner, you get paid upfront for your accounts receivables. You can eliminate the risk and shorten the waiting time typically associated with customers’ payments for your delivered goods.
Whether you’re a start-up or a long-established company, factoring services can work for you. Not only will you be able to grow your business and take on larger shipments, but you will be able to ensure that your business always has a positive cash flow, thanks to Interstate Capital’s same-day funding on approved invoices.
To find out more about how factoring services can benefit importers and exporters, get an instant factoring rate quote today.