INTERNATIONAL FACTORING
International Factoring means the purchase of the existing undue receivables arising from the sale of goods or the provision of services in foreign trade transactions.
Focus Factor Plus acts as an export/import factor in international factoring in the so-called two-factor system. Focus Factor Plus doo, as a member of the leading international association of factoring companies (FCI), acts in accordance with the established rules prescribed by the said association for all its members (GRIF – General Rules for International Factoring), which brings the client protection to the highest level. An Interfactor Agreement is signed with a partner – factoring company in the country of import (Import Factor), which stipulates that the Import Factor deals with the collection of receivables from the Importer.
FCI (www.fci.nl), as a leading international association of factoring companies, is present in more than 90 countries of the world, and the annual turnover of the FCI members in 2023 reached EUR 3.8 billion.
Choose a product that will improve your business
If your company has many years of good business cooperation with a partner abroad and a concluded commercial contract on the export/import of goods/services, international factoring is the best choice for you, and the advantages it offers are the following:
QUICK COLLECTION OF RECEIVABLES AND POSITIVE EFFECT ON CASH FLOWS
INSURANCE AGAINST THE DEFAULT RISKS, POLITICAL RISKS AND FORCE MAJEURE
ADDITIONAL WORKING CAPITAL
POSSIBLE INCREASE IN EXPORT SALES DUE TO THE USE OF A FLEXIBLE SOURCE OF CAPITAL AND A BETTER NEGOTIATING POSITION WHEN APPROVING PAYMENT DUE DATES
- Sale of goods or services – invoices
- Request for limit approval
- Customer creditworthiness assessment
- Limit approval
- International Factoring Agreement
- Notice of Assignment of Receivables
- Invoice with customs documentation (Single Administrative Document (SAD) and CMR)
- Customer financing – 60% – 90% of the invoice amount
- Invoice settlement when due
- Transfer of collected funds from the importer
- Transfer of the remaining part of the collected invoice in the amount of 10% – 40% minus the interest cost
How does International Factoring work?
Focus Factor Plus doo (as an export factor) signs a contract with the exporter on the purchase of receivables based on the request for international factoring, all based on the invoices that must be confirmed by the Importer – a non-resident.
Focus Factor Plus doo finances 60% – 90% of the invoice amount in advance.
The client pays a monthly fee on the total invoice amount.
Interest is calculated on the financed amount.
Focus Factor Plus doo signs a contract with the Import Factor on the collection of receivables.
On the due date, after the payment made by the importer/non-resident has been posted, the Import Factor transfers the funds to the account of Focus Factor Plus doo in the commercial bank.
After the payment has been made by the Import Factor, Focus Factor Plus doo pays the remaining amount to the Client/Exporter (10% – 40%), minus the factoring interest calculated on the financed amount.
If acting as an Import Factor, Focus Factor Plus doo:
Focus Factor Plus keeps its contracted fee and forwards the rest to the Export Factor’s account.
Factoring costs (Export factoring)
Costs:
FACTORING FEE – monthly per individual assignment, calculated and charged for the entire amount of the invoice.
FACTORING INTEREST – calculated on the financed amount (60% – 90% of the invoice amount) and is charged monthly or upon settlement of liabilities by the customer, by subtracting the remaining part from the payment to the client.
If you are interested in our international factoring services, please fill out the requirements.