International Factoring

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International Factoring

• 48 Factoring Inc.

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Contents

• What is factoring 2.0
• What is international factoring transaction
• Steps to International Factoring
• Conclusion

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What is Factoring 2.0

• Factoring 2.0 is one of the best financial
  alternative for small business.
• This mainly depend on customer invoice. For this
  process, your business should be one year old and
  revenue should be more than 100,000 in last 12
  months.
• Factoring 2.0 is different from loan. Here
  funding mainly depend on customer invoice with
  fast approval and minimal paperwork.
• It is one of the easy financing options for small
  business owners.

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What is International Factoring Transaction

• It is one type of invoice factoring and it is
  conformity between company and factor . Here
  factor buys trade debts.
• Factor provides different kind of services such
  as collection of debts, financing, sales ledger
  maintenance, and security against credit risk .
• International Factoring comes in different forms,
  depending on company needs and how much they can
  pay.
• Europe and North America is most advanced in
  international factoring transaction.

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Contd..

• There are different type of international
  factoring transaction i.e. Single factoring
  system, direct export factoring system, two
  factoring, direct import factoring, and back to
  back factoring are five options.

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Steps to International Factoring

• The company exports the collateral signs, an
  agreement with the factor which labels all the
  products to the factor.
• The factor choose another company to which they
  assign the product. This will allow the importer
  to import the product into the country .
• In meantime, the importer runs the credit of the
  person buying the product and establishes a line
  of credit.
• After everything has been finished, the original
  factor will increase a percent of the invoice's
  value to the original company usually this goes
  up to 80.

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Contd..

• Now the importer will have the full value of the
  invoice and will pay the factor his funds,
  enabling them to pay the exporter.

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Thank You

• 48factoring Inc