Take export factoring as an example:
1. What is export factoring?
Export factoring, also known as invoice financing or accounts receivable/invoice financing, is a common trade financing method.
In transactions with accounting period (such as payment by D/A), the exporter can get most of the payment in advance by transferring the invoices and shipping documents of accounts receivable to the factor after delivery. If the buyer fails to pay or delays payment in the future, the factor will bear the responsibility for payment.
2. What can export factoring bring to foreign trade enterprises?
Real account income
Factoring is not borrowing, but discounting accounts receivable in advance;
credit insurance
Even if the customer is bankrupt and unable to repay, the payment can still be recovered;
Facilitate transactions
Assist in introducing and communicating with buyers, and buyers will handle payment more seriously;
Unsecured requirement
Without any mortgage or personal guarantee, including credit insurance;
Simple and quick
Simple process, quick approval, online platform operation or access;