July 26, 2022
Offshore Banking Factoring

Offshore Banking Factoring

Offshore Banking Factoring Provides Reliable Cash Flow

A factoring relationship is not new and one of the most reliable ways to help your business grow and prosper is by selling your invoices. The factoring industry has been operating for over 5,000 years making it one of the most reliable and simplest forms of supplier financing available.

Invoice factoring is the selling of your invoices on an annual basis for a discounted fee, keeping this factoring relationship in the background. When an agreement is made with an invoice factoring company, the company needs to send a certain number of invoices to the factor. The factor advances 80% – 90% of the value of the invoices once you receive the invoice. Also, as the borrowers pay the fees upfront, the factoring company handles all credit and collections in addition to paying your growing business until the invoices are paid. Although this may not sound like such a great arrangement, the factoring transaction is a win-win for those involved. The factor performs all of the underwriting, the effective collections, and pays at no interest rates for the term of the agreement. You simply keep getting paid – only 90% of the value of your invoices are sent to you. This is a valuable and versatile financing strategy which allows your firm to extensive the services you provide without holding any additional balances on your invoices. Offshore Banking Factoring

Even if you don’t think it’s worthwhile to get involved with an “off shore” factoring agreement, the factoring service may provide ways that your business can grow. You can also benefit from the factoring service by performing credit reports for customers who might otherwise wait until your customers pay you. As an extra bonus, when your company has payment terms with your customers, they might agree to send payment in bulk to your factor instead of individual checks, making the factor your one-stop shop for maintaining and collecting your invoices.

There are several advantages to performing business factoring under an “off shore” arrangement:

There is maximum flexibility with a factoring agreement.The initial and largest expenses for a factor are Sending and Receiving the Funds, and obtaining credit insurance for you. These expenses are the primary expenses any suit23 build and maintain a healthy relationship with potential customers. When you use offshore factoring, you can minimize or eliminate these expenses.

Many factors provide great options for your business needs, exceptional customer service, and online access to your invoices. Offshore Banking Factoring

Factoring companies typically report to D&B, while providing the same level of customer service and day to day reporting as “shore” companies.

Offshore Factoring is not a loan. New businesses who are unable to obtain a traditional bank loan cannot obtain this assistance. This difference means that the cost to factor your invoices will generally be higher than if you were working with a bank. Offshore Banking Factoring

Factoring companies offer full service accounts and information services. With an offshore account, these services are available to you throughout the term of the agreement, without any obligation.

It’s hard to beat! Here’s a list of a few reasons whyumbing internationalRead more> invoice factoring companies: Advantages & How They Can Help Your Business!