Export Factoring and Customer Insolvency

For companies operating around the globe, finding the money to grow and sustain a business can be challenging. Some businesses might find that they don’t meet the criteria to get a traditional bank loan, or that lenders are hesitant to give them money because of their industry or size. Startup companies especially can find themselves in a difficult position, unable to obtain funding, but struggling to grow a profitable business due to a lack of capital. International trade finance companies like Tradewind Finance are working to support these businesses through export financing, as well as other supply chain services.

Export factoring is one way that businesses globally are choosing to operate by. Export factoring streamlines the financial processes between suppliers and their customers who buy the products or services they create. Rather than waiting to be paid when the products are sold, export factoring allows companies to increase cash flow along with every invoice being sent to a customer. Working with a financial company that is experienced acting as an import/export liaison through multiple currencies and markets can make a big difference in the success of a business.

Best Factoring Companies

Export factoring and other supply chain finance companies use a system of billing that maximizes cash flow throughout the supply chain. International export factoring companies such as Tradewind purchase invoices for up to 95% of their value, collecting payment from their clients' buyers when the invoice matures. This gives a business financial power to continue growing their operations and sales, paying suppliers, and building relationships with clients around the world.

Before embarking on an export factoring agreement between a company and their customers, Tradewind looks at the financial reliability and creditworthiness of the buyers. This means that a company won’t be held responsible for checking the credit history of and vetting the buyers they want to do business with. Once buyers are approved and a relationship is established, capital is available for the company to continue creating products, expanding their business, and growing their company both domestically and around the globe. 

Export factoring can help companies of all sizes and in many different industries accelerate cash flow, improve invoice collections, and control their exposure to bad debts. There is the added benefit of offering longer payment terms to buyers without slowing cash flow coming through a business. When done correctly, export factoring, as well as supply chain financing, can make the process of doing business easier for everyone.

Fast-growth companies, export and import companies, asset-light or capital-intensive companies, or companies that struggle to obtain traditional financing can all benefit from the services of an international export factoring company like Tradewind.

Customer Insolvency

Of course, getting paid quickly is great, but what happens if a customer is unable to pay their invoice? If a customer is unable to pay an invoice that has been purchased by Tradewind, Tradewind assumes the responsibility for paying the bill. This protection against customer insolvency keeps companies safe from buyers that may default on payment during the course of doing business and ensures there won’t be a disruption to their cash supply if a buyer becomes unable to pay.

With payments made against documents, Tradewind is able to handle the bank collections process for a company. This leaves companies able to concentrate on their daily tasks at hand, rather than dealing with a lack of money because of unpaid invoices. Additionally, companies don’t have to divert their resources to track down payments from their customers; they can leave this up to the export factoring company, who takes care of that task for them.

Tradewind Finance

Tradewind Finance, a leading international trade finance company, has more than 20 offices in 13 countries and is able to help businesses in almost all global markets. Tradewind specializes in export factoring and supply chain financing for clients, such as farmers, processors, wholesalers, and distributors, who deal in a variety of industries including food and beverage, textiles, electronics, and much more.