What is Export Factoring Secure-Plus?
Export Factoring Secure-Plus is the ideal product for companies meeting the challenge of globalisation and venturing in markets abroad. This is a service package which allows you to successfully serve buyers in various countries at competitive terms that meet their requirements. The favourable payment terms which come as part of this service will give your offer that definite edge.
What does Export Factoring Secure-Plus offer?
As regards Bad Debt Protection, we guarantee payment of up to 100% on approved and undisputed receivables. Should such an invoice remain unpaid 120 days after its due date, it will be assumed that your buyer is unable to meet his obligations, and we will pay instead.
As for Debtor Management, once we are engaged by you we will start following up all outstanding invoices to ensure that payments are made on time. Our sophisticated systems will support professional collection efforts implemented in line with the laws and practices of the country in question. In the case of approved invoices, any legal collection costs are borne by us. Through our Immediate Financing service, we offer to finance receivables within funding limits established with regard to each of your foreign buyers. Up to 90% of the invoice value will be advanced immediately, with the remainder being paid after settlement of the invoice. This means that your sales on credit terms are transformed into cash, thus releasing your banking facilities.
Who can use Export Factoring Secure-Plus?
This service can be tailored to fit the requirements of SMEs as well the larger enterprises, and will be relevant to any producer or trader delivering goods or services on credit terms from 120 to 180 days, to a relatively stable number of corporate buyers. Receivables must result from contracts completely fulfilled by the exporter, thus being unconditional and enforceable.
What are the benefits of Export Factoring Secure-Plus?
Should you decide to undertake this service, you will be in a position to avoid debtor losses arising from unpaid invoices. The advantages of Export Factoring Secure-Plus will also be reflected in your balance-sheet ratios, and in a more stable and predictable cash flow. This service will also increase your competitiveness, not least because you will be benefitting from a reduction in costs as a result of outsourcing this task through us.
What are the costs of Export Factoring Secure-Plus?
Pricing will be based on your annual turnover structure. It will also depend very much on the quality of the buyers, the relevant payment terms, and the characteristics of the industry in question.
What is the average standard pricing?
The Export Factoring commission, based on gross turnover, would normally be of between 1.2% and 2%. There would also be a handling charge of USD 15 per invoice or credit note, together with an annual account maintenance fee of USD 45 per buyer. Other costs would include an application fee and one-off set-up costs.
What kind of information is required for a first quotation?
Basic information required would relate to your turnover structure per year and country, as well as details regarding gross turnover (including number of invoices, credit notes and buyers). We would also ask for information regarding average outstanding balances and terms of payment granted, together with an indication of invoice currency.
Please make use of our questionnaire for this purpose