International factoring

International factoring there are several types of two-factor and one-factor model: direct import, direct export. This factoring gives your company the opportunity to carry out commercial activities on terms of a deferred payment, without opening a letter of credit or issuing a bank guarantee.
Participants of the operation of international factoring:
A factor company that buys a monetary claim. Two factors factoring companies participate in two factorial factoring: export factor and import factor.
The supplier of the goods (the exporter) having monetary requirements to the buyer of the goods (to the importer).
Buyer of the goods (importer), having monetary obligations to the supplier.
 
Two-factor model of international factoring.
With the two-factor model, the functions of international factoring are divided between two factor companies (export factor and import factor), which are residents of different states. The import factor is a bank or a specialized factoring company that provides international factoring services in the country of a non-resident buyer. Import factor is present in the implementation of a two-factor model of international factoring. Import-factor functions may include the implementation of international settlements for foreign trade contracts, covering the risk of non-payment by a non-resident buyer, receiving proceeds from a non-resident buyer and paying the importer's debt to an export factor, in the event of default by the importer.
One-factor model of international factoring.
One-factor model provides that the company-factor and the client company are residents of one state. This model is used mainly for export operations. This export factoring provides for export financing under the assignment of a monetary claim, under which the seller and the export factor are located in the territory of one country, and the buyer is a resident of another state.
As an export factor, a bank or a specialized factoring company is providing financial services to an exporter (supplier). The function of the export factor includes financing the exporter in full or in part of the proceeds under the export contract. In addition, it can carry out international settlements, carry out insur- ance risk insurance on the part of the importer (non-resident buyer), as well as receive revenue from non-resident buyers.

The main advantages of using international factoring for exporters and importers are:
  1. International factoring allows you to increase cash flow.
  2. International factoring allows you to attract the best suppliers to customers, as the guarantee of payment is increased.
  3. Long delays in payment contribute to an increase in available funds from buyers.
  4. With an increase in the period of sale of products, the buyer receives a commodity loan on favorable terms.

Under direct import factoring, the factor-firm of the importer's country concludes an agreement with the exporter on assigning debt claims to the country, insures credit risk, records and collects claims that are internal to the factoring company.
Import factoring allows Russian buyers to import goods and services from foreign suppliers on a deferred payment basis, without resorting to credit load and additional costs for the transaction.