Factotring Internacional

What is international factoring? |[pic]  [pic] | |
|Factoring offered to export sellers rather than to domestic sellers is commonly known as International Factoring. |
| |
|International factoring is now universally accepted as vital tothe financial needs of small and medium-sized exporters. It has |
|the support of government bodies and central banks throughout the world and more and more large exporters are using international |
|factoring as well, but sometimes selecting only a limited number of services rather than the complete package. |
||
|As international trade continues to increase, so too do the opportunities for the factoring industry. Because international |
|factoring works in a similar way to domestic factoring, exporters have realised that it can help them to become more competitive |
|in complex world markets.|
| |
|Many businesses that turn to factoring companies are reassured to know that the industry is closely associated with the banking |
|sector. Althoughfactoring companies remain highly specialised institutions, nearly all major banks now have factoring |
|subsidiaries. This has enabled the industry to promote its services with great success and to work for businesses of every size. |
| ||Factoring has become well established in developing countries, in particular in those that are highly industrialised. In various |
|Asian countries, the growth of factoring has been dramatic while in Latin America, financial institutions continue to join the |
|industry. Similar growth has occurred in Central Europe, the Baltics and the Middle East.|
|Factoring in international trade |[pic]  [pic] |
|For many companies, selling in an international market place is the ultimate challenge. While the rewards can be substantial, success |
|can also bring its share of problems.|
| |
|Different customs, currency systems, laws and languages still create barriers to trade in a world where sophisticated computer |
|technology allows orders abroad to be placed within seconds.|
| |
|One of the greatest problems facing exporters is the increasing insistence by importers that trade be conducted on open account terms. |
|This often means that payment isreceived many weeks or even months after delivery. Unsurprisingly, many organisations find that giving|
|buyers credit in this way can cause severe cash flow problems. Further problems can arise if the importer delays payment beyond |
|originally agreed terms or makes no payment at all because of financial failure. |
|...