International export factoring

2021-03-08 09:07



Donghua supply chain international factoring consulting business can help export companies diversify their use of financing tools to clarify the future development direction, and promote the company to become bigger and stronger.


What is international factoring business?

Compared with the traditional trade model, in the traditional export trade model, buyers and sellers achieve the completion of business processes through direct transactions .
That is: the

 

Essence of the international factoring financing business is based on the financing of the transfer of accounts receivable, that is, the financing tools generated by the factoring of the asset ownership of the supplier's (exporting company) accounts receivable and the traditional international trade model. In contrast, 

the 
main process of:





factoring:



into the original business model through the form of capital chain is as follows: the advantages of international factoring:

the benefits of factoring to SMEs:
 

(1) Information financing

Generally speaking, SME customers have a relatively weak position in transactions with customers or in the supply chain. Usually, they must provide credit settlement conditions for sales. Accounts receivable. Factoring can help them revitalize their accounts receivable. Fund assets to promote effective use of funds

 

(2) Increase sales and profits

Although the method of credit sales has formed accounts receivable, it is a common means of competition to promote sales and expand the market. When goods or services are sold, profits are formed. Credit sales lead to high financial pressure. Factoring can help.

 

(3) Sales sub-account management

Factors can regularly provide accounts receivable collection status, overdue accounts status, aging analysis, etc., according to customer requirements , and send various statements to assist customers in sales management

 

(4) Improve financial structure

Factoring business does not need to borrow from financial institutions, will not increase the debt ratio and increase the currency assets, reduce the accounts receivable, and optimize the entire financial structure

 

(5) Reduce exchange rate risk

Import and export business will face the risk of exchange rate changes. By handling export factoring prepaid financing, foreign exchange collection can be realized in advance and the exchange rate risk can be locked in

 

(6) Bad debt guarantee

The factoring company can verify the buyer's risk limit according to the actual situation, and provide 100% guarantee for the seller 's accounts receivable caused by the delivery or provision of labor within the limit.

 

(7) Collection of accounts receivable

The factoring company has a professional collection team that will take reasonable, powerful, and disciplined methods according to the overdue time to help customers safely and quickly recover the accounts

 

(8) Increase in buyer credit investigation

Paul Factoring in operation before factoring business will be relatively buyer credit assessment of the buyer to assess the results back to the seller no doubt for the seller's sales decisions provide a strong basis for judgment


 
Donghua supply chain has experienced executive management team with its expertise Donghua supply chain team for small and medium micro enterprises to provide financing accounts receivable factoring service has been a lot of success stories can effectively solve their financing problems for exporters.

if Your company also has export financing needs
, please contact us: 0769-22898086

+86 769-22898086

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