Export Finance is a great tool that can help your business to release working capital from its overseas transactions. Export finance is a key competitive factor for exporters and may increase their opportunities of signing a contract. It can provide several advantages for both the SMB exporter and the importers which are explored below.
Advantages for the exporter:
- Gain competitive edge by offering credit terms to prospective Debtors / Buyers
- Receive cash payment upon shipment
- Does not tie up assets
- Does not require security over the goods
- Avoids credit, currency, or interest rate volatility during the settlement period
- Can manage cash flow more efficiently on a selective receivables basis
- Does not need to waste time or use administrative resources to collect the debt
Advantages for the overseas customer:
- Can take advantage of competitive prices in markets not otherwise available
- Does not have to pay up front for the goods before they arrive
- Can use credit terms to manage cash flow
- Treats the export finance provider as the supplier, therefore is not taking on debt
- Is safe in the knowledge that their supplier will be strengthened by cash up front and, as a result, will be able to continue trading with a shortened sales cycle
- Obtain financing that is less expensive than local financing
- Opens new market opportunities to increase margin
How can Accelerated Payments help?
Accelerated Payments (AP) provide an Export Finance product that is tailored to suit the financial demands of individual companies with overseas customers. Export Finance from Accelerated Payments is particularly suited to trade with large foreign multinationals with extended payment terms. Export Finance is a simple and cost-effective way to fund your business’s reach into new markets around the world.
We can help your business to accelerate its payments as and when needed.
- Immediate release of 80% of the receivables value while you wait for your customer to pay
- No restriction on the level of foreign sales – you choose which receivables to fund and when
- Fast decisions, fast funding, and a straightforward online process
- No personal guarantees or additional security required
- Multiple currencies supported
Need some help? Our expert Client Management Team are on hand to look at your specific requirements and will quickly respond to your enquiries, why not get in touch today or check out how it works and our eligibility criteria.