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Export-Import
Trade Finance Through
Seaside Factors
Export-Import Trade Finance can
present considerable challenges to America's small and mid-size business
owners. Typical export-import transactions may include requirements
for letters of credit, purchase order finance, international credit
insurance, and international factoring among others. These can often
present such difficulties that business owners simply ignore
opportunities that can lead to thousands or even millions of dollars in
revenue.
International Factoring
International factoring
is a fast growing method of finance that is taking the place of many
more typical letter of credit transactions. One of the benefits of
international factoring transactions is the speed with which they can be
put together.....generally within 48 hours. A typical international
factoring transaction includes four parts. First:
• The exporter signs a
factoring contract with an export factor in its own country. Under the
terms of the agreement, the exporter assigns all export receivables to
the export factor. The export factor is responsible to the exporter for
all aspects of normal factoring service.
• The export factor selects
an international factor as correspondent to act as import factor in the
country to which the exports are going. The receivables are then
reassigned by the export factor to the import factor.
• The import factor will
establish credit lines for each of the importers. The credit lines will
be for a specific amount and terms of sales. The export factor confirms
the details of the credit lines to the exporter.
• After the exporter ships
the goods and sends an invoice to the importer, the import factor
handles the collection of the receivable and the prompt payment of the
proceeds to the exporter's account at the export factor.
At
Seaside Factors
we can provide your business with the necessary financing
arrangements allowing for both export and import trade. This is
primarily arranged through
Factors
Chain International. Additionally, our relationships with
such international credit insurers as Euler ACI, can provide export
credit insurance on your shipments in almost any part of the world.
To be certain, financing export
import transactions offers challenges to even the largest and best
capitalized companies. Don't walk away from this lucrative profit
center for your business simply because of lack of experience. Let the
professionals at
Seaside Factors assist you in your international credit and financing transactions.
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IMPORT-EXPORT
TRADE FINANCE
While the declining dollar
may ultimately have a positive effect on the migration of domestic
manufacturing, the clear path to prosperity for many manufacturers is
China and its Asian neighbors.
For those investigating the
possibilities of international trade, international factoring can
provide the necessary capital to make contract manufacturing a realistic
alternative to eroding profit margins and loss of business do to
offshore competition. |
