Export Factoring is a form of trade financing provided by purchasing trade bills which occur from open-account export transactions on credit (including transactions on D/A basis), on a non-recourse basis.
Export Factoring is a complete financial package that combines working capital financing, credit risk protection, accounts receivable bookkeeping and collection services.
- Open-account export transactions are transactions in which the exporter dispatches shipping documents after sending the export items, and the foreign buyer remits the payment for the items directly to the exporter’s account after a certain period of time.
- "Without recourse basis" means the exporter is not responsible for the payment even when the foreign buyer fails to fulfill its debt obligation for its financial difficulties.
||Open-account export transactions on credit (including transactions on D/A basis)
- - Companies with experience of producing or exporting the export item for more than a year or,
- - Companies which have past transactions with the same foreign buyer
- - One factor system : payment terms less than 6 months
- - Two factor system : payment terms less than 6 months
|Payment for the purchase of trade Bills
||80-100% of the export amount
- - Discount fee: LIBOR + Spread + Import Factoring Fee(Two factor system)