- 26 Oct
Funding Exports To The Former Soviet Bloc
Another example of the diverse range of customer issues that we are able to solve. We were contacted by an exporter that has two debtors based in a former Soviet bloc country. He was looking for finance against his sales to these debtors and had not had any success finding a funding company that could assist with prepayments against his invoices.
We spoke to a number of our funding partners and in some cases the issue was that they are only prepared to finance a small proportion of export sales. For example, if less than 30% of turnover was to export customers many of our funding partners would be prepared to finance the deal. Many invoice financiers may well take a view if it is just a small proportion of a customer’s sales there are exports. In such cases they are often prepared to include the export debt in the funding formula that they apply to the UK sales. However, in this case, as it was 100% export, and a potentially difficult country to find funding against, it was a challenging customer to help.
We were able to find them and invoice financier that was both prepared to handle the 100% export nature of their business, and to provide finance against the country in question.
If you have a difficult export funding situation that you need help with, we would be pleased to see if any of our partners can assist. In addition to receiving pre-payments against export invoices, exporters often like the idea of a factoring facility that also provides a full credit control service. This means that your invoices will be collected for you which can often be helpful, particularly if there are language barriers in the territories that you are dealing with. Export factoring companies often have their own staff there are skilled in both foreign languages and local customs in order to assist clients with the collection of their export sales payments.
We also have more information about export finance on our website. This includes a link to a list of the export territories that we can potentially help with. Even if the country in question does not appear on the list please get in contact as there may still be options available to you