International Factoring

International Invoice Factoring Finance For UK Exporters

Does your UK business export goods and services overseas on credit terms? Is global trading causing you cash flow problems?

Trading with overseas companies on credit terms can cause the same cash flow problems for exporters as businesses experience with transactions confined to the UK. However invoice factoring finance is available in the right circumstances.

The first point of note is that there are fewer lenders who can offer invoice finance internationally via an export factoring facility, however cash advances can be made against invoiced goods or services exported to approximately 90 countries. Secondly, charges are slightly higher than for UK based factoring due to additional administrative costs, but if profit margins are good, then there are lenders out there!

Can my company factor our global exports?

The key criteria for an export factoring service are as follows:-

  • Business to business invoiced credit terms of 30 to 120 days.
  • Advances up to 90% of the invoice value.
  • Established, profitable companies exporting from the UK.
  • Minimum export turnover should be in the range £1.5m to £2.5m.
  • Your customers need to be in countries covered, typically, Europe, USA, Asia.
  • For any customers debt to be factored, it must be an insurable debt from the lenders viewpoint.
  • Some lenders require a percentage of trade to be conducted within the UK, but not all!

Factoring of international invoices works the same way as within the UK. However if you need to be reminded about the key aspects of invoice finance, try this page about the benefits of factoring.

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