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Overview

International receivables are accounts receivable owed to businesses by overseas customers. They are created when a company exports products to a company overseas on open account.

Companies that export products may use several different approaches for completing cross-border transactions.

First,  an exporter may require the overseas buyer to pay cash in advance for the goods. Naturally, this approach may not appeal to the overseas buyer. The buyer typically wants to receive goods and inspect them before paying for them.

A second option is for the exporter to obtain a letter of credit from the buyer. this method of finance also may not be attractive to the buyer. Obtaining a letter of credit draws down the buyer's line of credit with the issuing bank, which may affect its ability to finance capital improvements or access working capital. In addition, letters of credit can be expensive to arrange in some countries.

Finally, exporting companies may finance overseas transactions by factoring their receivables. Factoring allows an exporter to maximize cash flow, minimize risks, and still provide flexible payment terms for it's overseas buyers. At the same time, it allows the exporter's customers to purchase more goods from the exporter without being limited to cash on hand or a bank guarantee.

Murcor Funding represents several funding sources that purchase international accounts receivable.  If you currently export products, we can provide you access to export financing.

Factoring international receivables offers the benefits of factoring domestic accounts receivable -- improved cash flow, immediate payment, flexible financing, and administrative assistance. International factoring provides a significant opportunity to increase a business's customer base, revenues, and profits.

Businesses can benefit specifically from international factoring because:

• They can offer more competitive terms to overseas customers, which in turn increases the their customers' purchasing power.
• They can offer terms without sacrificing working capital.
• They can maintain total control of their finances while managing their risk.
• No bank letters of credit are needed.
• No currency exchange variables or costs will affect profits.
• Factoring can simplify international sales transactions.
• It can provide total protection against bad debts.

Also, international factors offer a variety of accounts receivable management services, such as bookkeeping, analysis and management reporting. These services can save your business time, money and resources while providing accurate, regular reports on your international business transactions.

Contact Murcor Funding to see if selling international receivables is a good way to resolve your cash flow concerns.

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