Cross border factoring

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B2B Pay is not offering factoring, and doesn't have immediate plans to offer factoring.

Working capital is necessary for a business to be successful. Merchant exporters can sustain a positive cash flow by factoring accounts receivable in exchange for cash. When cash flows are negative, and liquidity is inadequate to meet financial obligations and funding growth for equipment or expansion, a business may close. If accounts receivables are pending, and rent, payroll, and supplier accounts payable and other obligations are overdue, outstanding debt can ruin a business. Finance from factoring may be the solution. A virtual bank account for exporters could qualify your business for financing at lower than market fee rates through cross border factoring agreements with verified international providers.

Solve Cash Flow with Factoring

Cash flow impacts a company’s inventory, accounts payable, and ultimately profit margin. How large or small this effect is has to do with the accounts receivable rate of return. Factoring of accounts receivables is an increasingly popular strategy used by small and medium sized businesses to mitigate cash flow problems. Financing from factoring pre-pays against existing invoices, and is settled at time of respective due dates directly by a client's customers. Cross border factoring services are international sources that offer reliable coverage of outstanding receivables when an account receivables invoice is overdue. Most factoring partners disburse loaned cash within 48 hours, making it a flexible financial solution to accessing cash fast.

Factoring a Targeted B2B Solution

Many companies are finding that factoring invoices in lieu of bank loan agreements to generate quick cash is the most efficient and effective solution for their cash flow problems. Spot factoring or invoice factoring is shorter term than standard accounts receivable factoring, and is an on-demand service that enables a debtor to sell one invoice at a time. Both types of factoring products offer debtor clients fast funding at a market rate. Each factoring transaction consists of three (3) main parties:

  • the debtor client selling the invoice(s),
  • the account debtor,
  • and the financier

Most invoices once factored are paid by the account debtor customer of the client within 30 to 45 days.

Factoring in specific countries

India: Reserve Bank of India Registration of Factored Accounts

India’s Factoring Act 2012 Registration of Assignment of Receivables Rules provides for the procedural requirements associated with the registration of factored receivables. Non-Banking Financial Companies (NBFCs) engaged in the factoring business that are not eligible “banking” institutions or government entities are required to be registered with the Reserve Bank of India (RBI).

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