Ep. 3 "Which Exporters are Suitable for Export Factoring?" | IFS Capital (Thailand)
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18 Sep 2023
Business Tips

Ep. 3 "Which Exporters are Suitable for Export Factoring?"

Thai exporters are from a variety of industries, and international trade involves multiple forms of payment. Exporters have a primary responsibility to prepare goods according to customer demand, but the matter of payment is also importance. Let's explore which exporters are suitable for Export Factoring.

1. Exporters who sell goods with payment methods of Open Account, DP, DA, or credit-based L/C with term of 60 or 90 days starting from the export date, B/L date or the arrival date of goods at the buyer's location. Waiting for payment according to credit terms can create liquidity issues for exporters who need funds to prepare goods for the next round of exports. With Export Factoring, exporters only submit their export documents for verification. If there are no issues with the shipment, exporters will receive funds promptly.

2. Exporters in all manufacturing industries can utilize Export Factoring, such as:

  • Exporters of agricultural products like eggs and poultry. The exporters often require immediate cash flow to supply goods for the next export cycle since most agricultural exports involve cash payments.
  • Industrial product exporters who continuously produce components needed by their importing customers. If the exporters face cash flow problems, it can impact production for exports.

3. Exporters without collateral can use Export Factoring and can increase their credit limit according to their business growth without relying on collateral. This means that exporters without collateral can still access this credit service.

Export Factoring is a financial product that helps small and medium-sized businesses grow and have financial capabilities to compete in the global market. This allows exporters to focus on product development and shipping without worrying about working capital or debts collection. Exporters who are interested in Export Factoring can contact IFS Capital (Thailand) Public Company Limited at +66 2-285-6326-32 or visit our website at www.ifscapthai.com.

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