Financing Export Operations

If you’re considering an exporter debtor finance provider, there are some questions to ask. Firstly, how strong and experienced is their network of overseas connections? Your business will be relying on these agents (often other banks) to perform credit checks on possible buyers and to chase payment on your invoices. To this end, you should ensure they are reputable. Also, ask what fees will be charged. These can vary with the identity of buyer, or the perceived risk in shipping to a particular country, and you may be able to negotiate better deals.

In conclusion, cash flow can be important for a number of reasons: your business might need fast access to capital in order to fund high growth, or you may need to pay suppliers quicker than your debtors are settling invoices. For export operators, obtaining debtor finance is one strategy that can protect cash flow against the long delays and payment uncertainties caused by open account terms which – for the moment at least – seem destined to remain world trade’s status-quo.

*Rob Lamers is from Oxford Funding. For further information about Oxford Funding, visit http://www.dynamicbusiness.com/www.oxfordfunding.com.au

*The opinions expressed in this article are those of the author, and don’t necessarily reflect the opinions of DYNAMICBUSINESS.com or the publishers.