What are Export Factoring Services and Advantages?

It is a factoring model in which intelligence, guarantee, collection and financing services are provided for the invoices issued by the exporter to its buyers residing abroad.

The basic service definitions are;

Warranty Service:
It is the guarantee of the receivables of the seller arising from the commercial invoices issued to the buyer abroad, within the limits granted to the buyer by the correspondent factoring companies.

Collection and Receivable Management:
It is the provision of follow-up, collection and reporting services to the seller.

Financing Service:
It is the payment of receivables to the seller company before their due date at a certain prepayment rate within the financing limit established by the factoring company for the seller.

Cash flow
There may be delays in collections due to maturity in open account export transactions against goods. Not knowing exactly when the collection will take place can lead to problems such as the company's inability to manage its cash flow and getting into a cash crunch. Export factoring prevents possible cash crunch, as soon as you have the complete loading documents, it becomes easier to reach cash and allows you to make more sales.

Hedging
Thanks to reliable intelligence information, it allows you to have up-to-date information about the buyer's financial strength and credibility in the market. It provides the opportunity to sell to countries you have not exported before and to buyers you do not know. Unlike similar financial products, it offers the seller the advantage of safe sales as it covers 100% of the receivables within the buyer's limits.

Balance Sheet Structure
With the irrevocable assignment of receivables, the firm has a more liquid balance sheet structure.

Work Load Densit
The fact that the receivables follow-up and collections are made by the factoring company reduces the workload of the company arising from the collection management.

Thanks to QNB Finansfaktoring's strong capital structure and wide intelligence network, your exports will continue without interruption, contact us at 0212 371 38 00 to take advantage of export advantages.