How International Factoring Can Help Your Company

ACCOUNTS RECEIVABLE FACTORING is now a universally- accepted financing vehicle to enhance the cash flow needs of small and medium-sized businesses. This financing mechanism gained support of government bodies and central banks worldwide. With the increase of international trade, opportunities for the factoring industry will likely also increase. Since international factoring functions much like domestic factoring, exporters now realize that this can benefit them allowing them to become more competitive in increasingly complex world markets.
The businesses that utilize factoring in today's international marketplace know that since the industry is closely associated with the banking sector, their transactions will be safe and secure. The fact that most banks now have factoring subsidiaries has enabled the industry to promote its services with greater success and to work for businesses of all sizes.

Accounts receivavble factoring has become well established in developing countries- particularly those that are highly industrialized. In some Asian countries, the growth of factoring has been very dramatic; while in Latin America, financial institutions are just beginning to join the factoring industry. This type of growth has also been observed in Central Europe, the Middle East and the Baltics.

In today's international economy, almost every industry can benefit from factoring. Although the textile and clothing industries are the most popular, manufacturers of industrial and farm equipment, office equipment, processed food and electronics are increasingly utilizing factoring to enhance their cash flow without borrowing.