Import and export factoring is a type of financial solution that allows trade companies to sell outstanding accounts receivable in exchange for immediate cash, giving them access to the working capital needed to operate smoothly.

Factoring in trade finance offers greater speed and flexibility compared to traditional trade financing options like bank loans or debt financing. It provides funding based on outstanding invoices, not strict lending criteria or credit history.

When factoring international trade invoices, you have two options for an agreement: recourse factoring and non-recourse factoring.

With the factoring of trade receivables, import and export companies can access up to 98% of the invoice value within a few days of invoice submission and verification. However, this time will differ between international factoring companies.

We have extensive experience providing import and export factoring across a wide range of industries including consumer goods, raw materials, food and beverage, textiles, energy, and more. Our specialists understand the unique needs and cashflow cycles for different verticals and provide the most flexible international factoring services.

In general, the impact of trade factoring on client relationships depends on the specific terms and conditions of the agreement, as well as the quality of the factoring company’s services. When done right, it can actually strengthen the bonds with your clients.

A good factoring company ensures that your clients experience seamless, respectful interactions around invoice payments, which builds trust. Moreover, with the financial breathing room that factoring provides, you're in a great position to offer more accommodating credit terms to your customers.