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Import-Export Trade Financing
For many small and mid-size business owners, financing exports and purchase orders can be a daunting task.  This is especially true if the export is a "first order" to a customer requiring terms of payment.  At East Bay Factors, we can provide trade and credit solutions for your company whether dealing with Canada, Europe, South / Central America, the Caribbean, or the Pacific Rim.  Our areas of expertise include....

International Factoring
One of the most powerful forms of domestic finance, factoring has an even greater presence internationally.  For import-export trade, international factoring eliminates the need for letters-of-credit and deposits.  As with domestic factoring, the exporter will receive approximately 85% of the invoice face amount upon acceptance of the goods.  The balance will be remitted upon receipt of payment by the foreign customer less the factor's fee.  In many instances, both an import and export factor will work together with the import factor guaranteeing the payment from the debtor.  International factoring can provide trade solutions for orders of $50,000 or more where payment is to be received within 120 days.

Purchase Order Finance
Purchase Order Finance can be be utilized domestically as well as internationally when upfront cash is needed for the manufacturing process when a large purchase order is received from a creditworthy customer.  Upon verifying the purchase order, the PO Finance Company will post letters of credit if necessary, pay a foreign factory for manufacturing, and oversee the shipment of goods.  Upon receipt of the good by the customer, the PO financier will generally be "taken-out" by a factor who will finance the invoice.

Forfaiting
Forfaiting is a common form of financing in certain emerging economies and much like international factoring, is used to finance accounts receivable.  Forfaiters absorb all risks including currency risk, economic risk, sovereign risk, and debtor risk.  Additionally, forfaiting can be utilized when the customer wants exceptionally long terms of payment such as 5 years or longer.  Unlike international factoring, however, most forfaiting transactions are well in excess of $1,000,000 and typically involve equipment.  Forfaiting can also be utilized to cover the uninsured portions of Ex-Im Bank guarantees for exceptionally large orders.

Find Out More
International financing solutions come in many shapes and sizes.  To find out more about our capabilities at East Bay Factors, complete our online "quick application" or download and complete our standard Company Profile and fax it to our offices. 

Member IACFB
International Association of Commercial Finance Brokers

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