What Are The Three Ways To Do Export Factoring?

How Export Factoring Works?

Tradewind Finance connects businesses and suppliers globally through eliminating trade risk. Being an international trade finance companies; Tradewind Finance helps decrease threats abroad and increase credit protection through export factoring and supply chain financing.

Export factoring methods can be done in three ways.

Open Account Terms

First on the line, is opening an account terms. This is done by analyzing the creditworthinness of a buyer, then setting a reasonable credit limit. And then, Tradewind finance would buy a company's account receivable and pay up to 95% of the invoice amount.

In summary, the buyer receive goods from the supplier and the finance company will make an advance payment to the supplier in behalf of the buyer. The buyer will pay the finance company when the invoice matures.

Via Payment Against Documents

In this method, the international trade finance company will make an advance payment to a company and then they will take care of their bank collection process. The buyer would receive their goods from the supplier, then the finance company will receive a finance documents from the supplier. Once received the company will make an advance payment to the supplier.

Via Letter of Credit

The supplier will received a place order by the buyer. The buyer, on the other hand will open a letter of credit with a finance company.

Which will guarantees that supplier is will be paid once the terms and condition specified is met. Then with this they will move forward on shipping the order. The finance company will be paid by collecting payment based on the conditions given in the letter of credit.

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