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Import-Export Trade Financing
For many small and mid-size
business owners, financing exports and purchase orders can be a
daunting task. This is especially true if the export is a "first
order" to a customer requiring terms of payment. At
Naples Factors, we can provide trade and credit solutions for
your company whether dealing with Canada, Europe, South / Central
America, the Caribbean, or the Pacific Rim. Our areas of
expertise include....
International Factoring
One of the most powerful forms of
domestic finance, factoring has an even greater presence
internationally. For import-export trade, international
factoring eliminates the need for letters-of-credit and deposits.
As with domestic factoring, the exporter will receive approximately
85% of the invoice face amount upon acceptance of the goods. The
balance will be remitted upon receipt of payment by the foreign
customer less the factor's fee. In many instances, both an
import and export factor will work together with the import factor
guaranteeing the payment from the debtor. International
factoring can provide trade solutions for orders of $50,000 or more
where payment is to be received within 120 days.
Purchase Order Finance
Purchase Order Finance can be be
utilized domestically as well as internationally when upfront cash is
needed for the manufacturing process when a large purchase order is
received from a creditworthy customer. Upon verifying the
purchase order, the PO Finance Company will post letters of credit if
necessary, pay a foreign factory for manufacturing, and oversee the
shipment of goods. Upon receipt of the good by the customer, the
PO financier will generally be "taken-out" by a factor who will
finance the invoice.
Forfaiting
Forfaiting is a common form of
financing in certain emerging economies and much like international
factoring, is used to finance accounts receivable. Forfaiters
absorb all risks including currency risk, economic risk, sovereign
risk, and debtor risk. Additionally, forfaiting can be utilized
when the customer wants exceptionally long terms of payment such as 5
years or longer. Unlike international factoring, however, most
forfaiting transactions are well in excess of $1,000,000 and typically
involve equipment. Forfaiting can also be utilized to cover the
uninsured portions of Ex-Im Bank guarantees for exceptionally large
orders.
Find Out More
International financing solutions
come in many shapes and sizes. To find out more about our
capabilities at Naples Factors, complete our online "quick
application" or download and complete our standard
Company Profile and fax it to
our offices. |
