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International Factoring Services Information

 

questionWhat is factoring?

answerFactoring is a financial transaction whereby a business sells its accounts receivable at a discount for next day cash.  In a typical factoring transaction you will fax or email a copy of your invoice.  Once we determine it is a valid invoice you are wired a percentage of the invoice (normally 70-90%) immediately.  When we receive the actual invoice payment we wire the remainder of the funds to you less our small fee.

questionWhat is international factoring?

International factoring works much the same way as conventional factoring above.  In addition we employ a range of services which include investigating the creditworthiness of buyers, assuming credit risk and also giving protection against write-offs, collection and management of receivables in countries across the globe with widely varying laws and regulations.

questionWhat is Export Financing?

answerExport factoring is a specialized financial package that combines export working capital financing, credit protection, foreign accounts receivable bookkeeping and collection services.  Export factoring is offered under an agreement between the factoring company and the exporter.  The factoring company purchases the exporter’s short-term foreign accounts receivable for cash at a discount from the face value.  The factor assumes the risk on the ability of the foreign buyer to pay and handles collections on the receivables.  This process all but eliminates the risk of non-payment of foreign buyers which allows the exporter to offer open account terms, improves his cash position which allows them to compete more aggressively all over the world.

questionWhat is Import Factoring?

answerImport factoring is a service which gives the importer the possibility of obtaining a short-term buyers credit for goods he purchases from foreign suppliers without the need of issuing any kind of bankers guarantee, letter of credit, etc.   When you employ import factoring you buy goods as usual but are obliged to pay the invoiced amount due to our account and not to the account of your supplier.

questionHow can I be sure that you will collect my receivables promptly?

answerU.S. Financial is a service oriented company and we owe our existence to being able to identify credit worthy customers who pay their bills on time.   For us to be able to offer non-recourse funding we have to be able to collect payments timely.  It is a well-known fact that the longer a receivable is past due the more risk there is in collecting it.  Therefore, in addition to doing our homework in approving clients we also monitor all payments very closely and are proactive in making collections.

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