Export dual factoring refers to the transfer to a bank by an exporter of accounts receivable arising under a contract for the sale of goods, services or construction entered into with an importer (debtor)，And then transferred by the bank to the import factor，The bank and import factor cooperate to provide financing, sales branch account management, accounts receivable collection, credit risk control and bad debt guarantee services for exporters。
Product characteristics
- Increase turnover。By providing new or existing customers with more competitive O/A and D/A payment terms through factoring, it is easy to expand overseas markets and increase turnover。
- Effective risk protection。Through the domestic and international factoring business network, the factor evaluates the importer's credit and assumes the importer's credit risk。Exporters are guaranteed 100% of their foreign exchange receipts up to the approved quota。
- Provide financing facilities and optimize financial statements。In the absence of commercial disputes and other cases, bank financing has no recourse to help enterprises turn "receivable" into "income" and optimize financial statements。
- Cost saving。Credit investigation, accounting management and accounts collection are all taken care of by the factoring, reducing the business burden of exporters and saving management costs。
- Suitable for exporters who want to reduce accounts receivable, but have doubts about the credit status of potential customers, and want to reduce risks and expand their business;
- It is suitable for seeking financing support and exporters when the working capital is occupied by a large number of receivables and the turnover rate of receivables is reduced.
- For exporters who want to reduce the burden of receivables management and collection。
- The exporter has the corresponding business qualification or qualification, strong ability to perform the contract, and strong market competitiveness;
- The relationship between the upstream and downstream customers of exporters is stable, and the business situation and transaction information are true and transparent;
- Exporters have good credit standing and meet the bank access standards;
- The import factor has strong financial strength, strong ability to approve payment, and meets the bank access standards;
- The importer's credit standing is good, and the import factor can approve the credit line for it。
- The exporter submits the application for export dual factoring business to the bank, and the bank contacts the import factor to evaluate the importer's credit.
- The import factor approves the credit line for the importer, the bank and the exporter sign the export double factoring agreement, and the exporter agrees to transfer its receivables to the bank, and the bank further transfers them to the import factor;
- After delivery of goods or provision of services, the exporter shall submit the invoice with the assignment clause to the bank for Posting, and shall forward a copy of the invoice to the bank;
- The bank informs the importing factor of the invoice details;
- If the exporter has financing needs, the bank will handle financing for the exporter against the approved receivables;
- The import factor begins to collect from the importer several days before or on the due date of the invoice;
- If the importer pays the import factor on the due date of the invoice, the import factor pays the export factor;If the importer fails to pay 90 days after the due date of the invoice and there is no dispute, the import factor will approve the payment。The export factor deducts the financing principal and interest (if any) and expenses, and pays the balance to the exporter。
S Company is a private enterprise, producing household cookware, the company is considering expanding overseas markets, but the company's brand is not well known overseas, importers in the United States and Europe and other places refused to open the card, requiring O/A90 days payment。Company S not only needs to provide favorable payment terms to the importer, but also worries about the credit risk of the importer and faces the problem of capital turnover。
The bank recommended the export dual factoring business to S Company, and made use of the good cooperative relationship with the American import factoring provider, successfully approved the factoring quota for S Company's importers in the United States, and started the export dual factoring business for S Company, with the business volume exceeding 15 million US dollars that year。Later, the bank provided export double factoring services for S Company's exports to Europe and Hong Kong。Benefiting from the bank's export dual factoring business, S Company successfully opened up overseas markets, sales and profit margins continued to rise, and finally successfully listed。