Menu

International Factoring

Reduce your export risk and stabilize your cash flow.

International Factoring

International Factoring: The Ultimate Guide for Exporters

What is international factoring?

International factoring is a financial product that can help make trade go more smoothly when exporting products from a foreign country to the United States. International Factoring is a term used interchangeably with services also described as invoice factoring, invoice discounting, accounts receivable factoring, accounts receivable financing, or A/R factoring. In international factoring, you are selling the export invoice to a finance company when goods or services are provided in return for an initial advance.  When the client pays the final invoice (30 days later and sometimes longer), the remainder of the payment is made minus a fee.  Because the finance companies, referred often to as factors, in these deals are often located in the same country as the importer, the exporter gains the benefits of local collection resources to help ensure payment is made promptly.  In addition, international factoring can provide cash flow support to withstand longer payment periods in their trade deals.

How does international factoring work?

What are the benefits of factoring international trade exports?

Fast Payments

Instead of waiting 30 days or longer for payment from your importer, we advance the cost of the product to the exporter once the product has been delivered to the Importer (Advance of 80% less our commission).

Credit Evaluation

We conduct credit investigation of debtors in the United States for our clients.

Risk Mitigation

We have the ability to convert international risk into local risk and can leverage our operations to help you collect.

Increase in Exports

With access to capital and better cash flow, exporters are able to conduct more transactions and turn over more product.

What you need to apply for international factoring?

1. Fill out online an application

2. Support documents:

  1. 1

    Copy of valid identification

  2. 2

    Financial statements – last 2 years

  3. 3

    Interim Financial Statement

  4. 4

    Accounts Receivable Report

  5. 5

    Accounts Payable Report

  6. 6

    List of clients to factor

  7. 7

    Incorporation of the Company

How can I get started and how long does it take to get funding?

The first thing to do is to fill out the online application or call us directly and one of our representatives will get the process going. The whole process should not take more than 48 hours from us receiving your application and supporting documents.

What types of companies use factoring and who do we fund?

Companies that get the most out of factoring are growing in sales and whose customers ask for payment terms. If your company has a product or service that sells with payment terms, there is no better tool for you than factoring. Factoring can be used by almost any company that gives payment terms instead of receiving immediate cash for the products it sells. Companies use factoring to supply the money needed to expand operations or maintain a current production level without sacrificing other areas of the business.

Credíto Real USA Business Capital provides international factoring for a variety of industries including, but not limited to:

  • Perishables
  • Non-Perishables
  • Services (BPO)
  • Light Manufacturing
  • Industrial
  • Process Products
  • Textiles
  • ***Contact us to inquire about other industries

Here's what some of our customers are saying.

"As an exporter, I feel that my hands are tied, and I’m at the mercy of my clients to receive my payments. I’ve had to extend the credit terms with some clients and our cash flow depends on the ability of my clients to repay. Local financial institutions are not working with the exporters, which makes things even more difficult. The International Factoring Program of Crédito Real USA Business Capital is a great solution for our financial needs."
Marvin Rubio
Panama

FAQ

Does factoring increase my debt and liabilities?

Does factoring affect how my customers perceive my business?

Will my customers see me as financially weak if I factor in my company?

How do I know if my customer is reputable?

How quickly do I receive the funds with international factoring?

Am I required to factor in all my company’s invoices?

How much will I receive in advance for my account receivables?

What if my customer does not pay any third parties?

Which customers should I factor in?

What happens if my customer does not pay the invoice factored?

Can I continue doing my accounts receivable?

What happens if my customer does not pay an invoice?

Resources to help your business thrive.

Find out about the ways you can improve your business, grow, and access the funding you need.

Get the funding your business needs to grow

Apply today to access fast and flexible business financing that can help you grow and thrive.