What Is International Financing?
For a company to grow in international trade, it needs resources that help it compete in the global marketplace. Especially taking into account that in international trade transactions, it is common for foreign buyers to request credit periods of between 30, 60 and up to 90 days. International financing is a way of accessing the necessary working capital so that companies can finance their exports and continue offering payment schemes to their global buyers.
Why International Financing?
If you often face liquidity challenges in your export business that limit you to process new shipments to buyers from other countries, your buyers often require credit terms and you have complications in acquiring working capital, international financing with factoring may be the answer for you. help your business grow.
Advantages Of International Financing
· Obtain a line of credit superior to that offered by banks
· Extend competitive credit periods for your global customers
· Get collateral-free working capital financing
· Focus on finding more business opportunities
· Spend less time collecting payments from your buyers
· Reduce dependency on banks and improve your cash flow
What is Foreign Trade Financing?
Foreign Trade Financing is a tool that facilitates obtaining liquidity through the advance collection of invoices for exported products. Companies that have a projection towards markets other than the national require sophisticated financial tools.
A line of foreign trade financing can be contracted by both exporters and importers.
Under these lines, we will not only obtain liquidity via an advance on our sales abroad or to meet manufacturing costs prior to sales.
Security in Foreign Trade Financing
When it comes to international relations, it is also necessary to provide security to said relations. It is key to have good advice when contracting a foreign trade line (COMEX) that covers all possible eventualities in this type of relationship:
Currency risk:
Reduces the risk of fluctuations in the value of currencies.
business risk
Reduce the risk in your imports and exports. It ensures compliance with the agreed conditions.
Default risk
It covers the debtor risk in the event of non-payment of trade credits abroad.
Liquidity risk
Allows the option of anticipating sales made abroad.
Advantages of Foreign Trade Financing
This type of financing offers a large number of advantages for companies that export. As a general rule, the time that passes until an invoice is collected is quite long, which can cause problems in large international operations.
· Provide liquidity
· cover risks
