Global Receivables Financing for Import and Export 3-12 months Contracts
We provide Financing Services worldwide and have been successfully operating for over 30 years.
Our goal is to re-capitalize new and established businesses with need in growth, expansion and financial vehicles for new potential projects with need of capital to expand and grow businesses worldwide.
What is factoring?
Factoring is a financial instrument based on purchase of customer’s (the seller) accounts receivable by the factor (GF). The main feature of factoring is immediate receipt of sales revenue from goods/services supplied by the seller while the buyer enjoys the benefits of deferred payment .
Factoring is a comprehensive service package. Besides financing, it ensures against the risk of payment default, provides analytical and collection services.
You supply goods/services and the GF pays you +/-80% of cost of goods/services supplied;
Remaining 20% are paid upon contract maturity as agreed between seller and buyer.
Factoring is mainly targeted by producers and wholesale traders that:
Supply goods/services under deferred payment terms on a regular basis.
Apply non-cash settlement method
Have shortage in working capital
Operate in highly competitive markets
Aim on increase in sales volume
A. For creditors (sellers)-
Sharp increase in sales volume
Higher working capital turnover; receipt of sales revenues immediately upon delivery
Collateral-free, revolving financing facility
Accelerated cash turnover
Improved balance structure
Attracting new buyers
Simple and efficient financing framework
B. For debtors (buyers)-
Room for deferred payment
Increase in purchase volume thanks to to convenient payment means
Efficient utilization of working capital thanks to deferred payment on goods/services purchased
Improved market position
Example – Farmer/Seller will harvest durian fruit in about 3 month’s time, Buyer/Distributor in Hong Kong signed long term contract supply with local Grocery Chains to supply durian and will have supply of fruit/product receivables in 45 days. Seller and Buyer agree with 2GF as intermediary to Factoring.
Buyer/Distributor deposit 20% with 2GF as PoF with signed supply contract proof on day 1, Farmer/Seller releases shipment on harvest time. Farmer/Seller collects 80% at time of cargo arrival/release in HK directly from 2GF and remainder of 20% within 30 days of release in HK. Buyer/Distributor pays back to 2GF on receivables 45th day as settled payments.
Long term dynamics and ease of transactions, Traders Team will complete stages with Buyer and Seller.
There are no finance/interest charges on this financial settings, standard Trade commission’s 2.35B/2.35S plus FA yearly fees will apply only.
For additional info send complete request with full contact info only, our local BDM will respond within 24 hours.
Our Global Team will reply on any related inquiry with complete info submitted (proper contact numbers, company details) within 24 hours, as one of our BDM | Business Development Managers will be assigned locally under consideration of adequate financial proposals/engagements.
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