The Immeasurable Value of International Receivable Lenders

The Immeasurable Value of International Receivable LendersOne of the many benefits of the Internet is that you no longer need a physical presence overseas in order to become an international business. The Internet enables you to communicate and deal with other companies from other countries much more easily.

But of course, selling overseas can be challenging. You have to think about shipping and delivery. You have to convert currency, and even small changes in currency can affect your profits. The rules about taxes and duties are different in other countries, and you may have to change how you market your products to work more effectively with different cultures.

If most of your business is B2B, one way of getting all the help you need is by enlisting the help offered by international receivable lenders.

  • As an international seller, you’ll need to compete with local suppliers. That may require you to offer more attractive prices and terms. You don’t have to insist on getting cash on delivery, because with international receivable lenders you may get about 80% (or even more) of the value of the invoice in a day or so.
  • Every business needs financing at some point, but many lenders won’t accept international accounts receivable as collateral. But with international receivable lenders, you get the financing you need quickly. As a bonus, these lenders can even provide the money you need in the currency you want, for your convenience.
  • These international lenders can also help you find out which foreign companies deserve credit. These experienced lenders either have the knowledge about the companies, or they already have the tools in place to make an accurate evaluation of their credit worthiness. You will then know which foreign companies pay on time, and which ones pay late or don’t pay at all.
  • When the companies are credit-worthy, you may then be able to offer generous terms. But for those companies who have poor payment histories, you can insist on cash deals to protect yourself.
  • These lenders may also have the infrastructure and personnel in place so that they can collect from your clients much more effectively. You don’t have to hire and train collectors of your own, and this saves you a lot of trouble, time, and money. The collectors of the lenders already know the language and the customs, and this can help you avoid cultural misunderstandings.
  • Some lenders may even offer a form of insurance against bad debts and late payments. With this service, you no longer have to worry about getting your money at all. Either your customer pays you, or the lender will.
  • There are several types of international receivable lenders. Some will offer straight loans with your invoices as collateral, while others may offer factoring. If you are in the B2B industry, and you give your clients payment terms, factoring may be a viable option. Tapping the international market has its opportunities and challenges, but with the right lenders you can navigate international business waters much more safely.