About Factoring & Trade

Trade will pay for the goods in transit & factoring is a way of raising money against your outstanding ledger. The process works as follows;

Trade Finance

  • Supplier put goods on the water
  • Trade finance releases funds (letter of credit) to supplier
  • When the goods land in destinations port, the trade becomes payable
  • Client either pays this at that point, or take a factoring facility until the debtor (end client) pays
  • Deliver your goods or service
  • Send your invoice to the finance company and your customer
  • Receive up to 90% of the invoice value from your chosen finance company
  • Your customer pays the invoice 30-60-90 days later (as normal)
  • The finance company pay you back the remaining 10-20% of the invoice minus their fees (Typically less than 2%)

Factoring

Factoring

  • Deliver your goods or service
  • Send your invoice to the finance company and your customer
  • Receive up to 90% of the invoice value from your chosen finance company
  • Your customer pays the invoice 30-60-90 days later (as normal)
  • The finance company pay you back the remaining 10-20% of the invoice minus their fees (Typically less than 2%)
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