For years now, U.S. companies have heard about the emerging global economy and the abundant opportunities abroad to increase sales, insulate themselves from business cycles, and build brand equity. But for a variety of reasons -- trade barriers, inexperience with international trade, and financial risk -- many business owners have elected to bypass global markets. Today, a conflux of competitive and regulatory forces are driving many businesses from the sidelines to the playing field. And international factoring -- the sale of accounts receivable to international finance companies with the resources, expertise, and local presence to actively manage trade risk is providing a solid platform for success.

One of the first decisions companies face when contemplating global trade is how to address the attendant credit risks and administrative responsibilities involved. The three traditional payment practices -- cash in advance, bank LCs, and credit insurance -- are all effective, proven strategies for facilitating cross-border transactions. But each has significant limitations. The drawback to cash in advance is that customers accustomed to the flexibility and convenience of open account relationships will typically object to payment before delivery. Another well-established option, bank Lcs, are effective and relatively convenient for the seller, but they are growing unpopular with buyers because they place a significant administrative and financial burden on the buyer to open, maintain, and pay the expenses associated with the LC. LCs also limit the buyer's financial flexibility by tying up valuable credit lines that could be used for other purposes. Plus, confirmation is not available for all banks, and disputes can be difficult and costly to resolve. The third option, credit insurance, usually does not provide full coverage, and its deductible and/or co-insurance payments expose exporters to additional credit risk. Further, credit insurance provides limited collection support; it typically requires exporters to perform their own credit investigations, and it places the burden on exporters to prove their claims.

Invoice Factoring provides you with debt-free cash if you have invoices for delivered services or products to commercial businesses or federal, state and local government.  Factoring account receivables provides you a way to get cash now for  already earned income on performed  services or delivered  products.  Accounts receivable factoring is a cash flow solution that does not require borrowing or giving up ownership in your business. 

Still have questions? Please contact us anytime! We look forward hearing from you regarding our programs.