International Factoring Companies

US exports are on the rise leading to increased opportunities for international factoring companies and brokers.

In January 2011 exports set a record 167.7 billion up 16% from a year ago and beating the prior high of 165.7 billion in July 2008, according to reports issued by the US Bureau of Economic Analysis on March 10, 2011.

Exporting improvements can be attributed to a variety of sources including:

• Goods are more affordable to overseas buyers with a relatively weaker US dollar

• Increased prosperity of developing countries and their growing middle class

• Greater accessibility between US suppliers and foreign buyers facilitated by online interaction

• Focus on doubling US exports within five years to stimulate economic growth and jobs

So how does this all apply to invoice factoring?

Increased trade equates to increased financing demand. For example, a US business sells parts to a foreign buyer. The goods are delivered and the invoice generated. It might take the foreign buyer 30-60 days to issue payment but the US business needs capital now to manufacture parts to fill another order. Factoring the accounts receivable provides immediate access to cash.

International factoring can work the other way around too. A foreign company may sell to a US buyer generating an invoice for the imported goods or services.

Factoring foreign accounts receivables comes with it own set of unique challenges.

First, overseas companies are likely to speak a different language…literally. The laws and paperwork for adequately securing and protecting the factoring company can also differ in another country.

Other details include the use of credit reporting companies with data on foreign creditors along with the issuance of credit insurance policies and letters of credit to improve the level of comfort for the factor.

When brokering international invoices it pays to work with factoring companies experienced in the nuances of overseas buyers and sellers. The 2011 Directory of Factoring Companies is a solid resource for identifying reliable businesses. Here is a highlight of one such company listed in the updated directory.

Factoring Company Spotlight

J&D Financial has been providing domestic and international invoice financing for over 30 years. Financing options also include government receivables, construction factoring, and purchase order financing. They work with factoring brokers all over the world paying commissions for referrals based on their factoring fees.

Commission Structure and Funding Guidelines:

• 15% commission on any factoring affiliate deals with a 4% fee or higher
• 10% commission on any deal with less than a 4% factoring fee
• Negotiated commission on purchase order financing
• If we can’t fund, we will provide factoring referrals to alternate funding sources
• Any industry (except third party pay medical)
• Any size invoice
• Pre and Post Petition Bankruptcy Financing
• Minimum $5000 per month to $2,000,00 per month.

Source: JD Financial at http://jdfinancial.com/factoring-brokers.php

If you are interested in doing business as with JD Financial just use the link to their website and fill out the Broker Sign In Form. Once complete you’ll have access to a factoring brokers contract as well as other documents you can download.