A service for international factoring can help you to raise the working capital that you need to keep your business moving forward in a positive direction. International factoring is a quick and easy financing solution that many small businesses depend on to raise working capital.
Not every small business factoring company offers service for international factoring. Finding the right small business invoice factoring company starts with doing some research. If you are new to factoring starting with the basics is a good place to start.
What is Invoice Factoring?
Invoice factoring is a simple financial tool that small businesses use to raise capital. You sell your invoices at a discount and receive the cash on hand that you need. The process can take as little as 24 business hours.
What is Service for International Factoring?
The best invoice factoring companies offer a wide range of factoring services, including international invoice factoring. International invoice factoring works the same as domestic factoring. You sell all or part of your outstanding invoices and get the capital you need.
International factoring services are focused on domestic US companies that sell their products overseas. If you sell your products internationally then you need a factoring service that offers international factoring.
Other Considerations
Finding service for international factoring is great but there are other things you need to consider when you are choosing the factoring service you will do business with including:
- Recourse or Non-Recourse Terms. Some factoring services offer the services with a recourse clause, this means you are responsible if your customers do not pay. A non-recourse clause means you are not at any risk if your customer does not pay. Most agreements have a recourse clause.
- What is the percentage? Typical arrangements are for 70% to 90% of the face value of the invoices. The percentages can vary widely. Be sure that you do your research to make sure you are getting the most value.
- Added value services. Be sure that you are connecting with factoring companies that offer some added value services like rebates.
Invoice factoring helps thousands of small business owners just like yourself every day. Just because most of your business is international it does not mean you cannot take advantage of the potential for advance business capital from your invoices. Learn more about this program today.