By Marco Terry
Selling your goods internationally can be extremely rewarding
and challenging at the same time. When you start exporting
goods, you truly open your company to a world of possibilities,
including the possibility of big financial rewards. At the same
time, you expose yourself to some of the challenges of
international commerce.
Many international transactions are settled using bank or
corporate letters of credit, which means you can rest assured
that you will be paid on time. However, many of your clients
will insist that you give them payment terms. This means you may
need to wait 30, 60 or even 90 days before you get paid. And if
your company is growing, waiting to get paid can be very tough.
Going to the bank for a business loan may or may not work. Most
banks only give business loans to businesses that have a great
past history. But this is of little use to businesses that have
a short history but a bright future.
A better option is to consider factoring your invoices, which
eliminates the 30 day wait that it takes to get paid. Export
factoring (or international factoring as it is also known) can
be a very useful tool for new and growing businesses.
Factoring is a form of financing, where a factoring company
advances you a substantial portion on your invoices. The
factoring company waits to get paid, while you get immediate use
of the funds. This eliminates the cash flow issues that happen
when you extend terms.
Export factoring is a factoring specialty. Actually, very few
factoring companies offer international export factoring, so
when talking to companies be sure to be specific and ask if they
offer this type of factoring.
Many factoring companies also offer purchase order financing.
This factoring product extension provides you with financing to
fulfill purchase orders. Purchase order financing gives you the
necessary funding to pay your suppliers, using the purchase
order as collateral.
If your company is growing and selling goods offshore, be sure
to look into factoring and purchase order funding as valuable
financing tools to help you grow.
About the Author: We are trade financing experts and can
provide you with trade financing,export factoring and invoice
factoring. For a quote, call Marco Terry at (866) 730 1922 or
visit - http://www.ccapital.net or http://factoring.qlfs.com
Source: http://www.isnare.com
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