Export Finance – What is it?
Our export finance service helps you develop your overseas business profitably and with confidence.
Not only do we provide an advance of cash against the value of your outstanding export invoices but then as you raise an invoice, we can release up to 90% of the value of that invoice within 24 hours. The remaining 10%, less a small service fee, is paid to you once your customer pays. This means your business has access to an ongoing supply of cash linked to your sales. So as your overseas business grows so does the amount of funding available to you.
In addition to the cash flow funding that we can provide, we also remove the hassle of dealing with overseas customers by going after and collecting outstanding invoice payments from them for you. Working with you, we decide whether to use the services of our in-house team or to use our worldwide network of associated factoring companies, always ensuring the smooth flow of business over differences in laws, customs and language.
We can also help in smoothing out the problem of fluctuating exchange rates by offering multi currency facilities. The lending institution can have overseas bank accounts for fast, low cost receipt of payments.
You remain in control by working with a dedicated team of people who ensure your customers are as happy to deal with us as they are with you.
How Does it Work?
1. You and the bank jointly advise the trading partner that you intend to use export funding services, so that the customer's cooperation can be expected when the bank contacts them.
2. When the bank receives your application, it will assess the creditworthiness of your customer and define a line of credit for them. An agreement will then be signed between you and the bank.
3. To help with your cash flow, the bank will provide a cash advance against the value of your outstanding export invoices with that customer.
4. You complete your business transaction and create an invoice for the goods.
5. You send the bank your export invoices for funding and the bank verifys that the goods were received.
6. The bank will release up to 90% of their value within 24 hours.
7. The bank include its details on your invoice and send it to your customer so that they can easily follow the instructions and make payment to the bank.
8. On the due date, the bank will collect payment from your customer and pay you the remaining 10%, less a small service fee