Choose factoring suited to your needs
For a business, exporting is an opportunity for growth. However, international expansion comes with a range of challenges. Besides high quality and competitive pricing, it is often necessary to offer foreign customers sufficiently long payment terms. Polish companies also fear difficulties in verifying foreign contractors and losses caused by sudden currency fluctuations.
Export factoring provides companies not only with cash tied up in unpaid invoices but also ensures security in international trade. By partnering with KUKE Finance, you will receive comprehensive support in conducting export activities.
Tired of waiting for payment for delivered goods or services? When your foreign clients delay payments, you may struggle to maintain financial liquidity. Export factoring is a quick way to convert invoices into cash. By using factoring from KUKE Finance, you receive cash immediately after issuing the invoice. These funds can be used for any purpose. Factoring also includes a package of additional services, such as managing customer accounts, monitoring and enforcing payments, and assuming the risk of foreign client insolvency.
Moreover, export factoring can increase your company’s competitiveness in foreign markets. The ability to offer extended payment terms without concerns about maintaining financial liquidity makes your products or services more attractive to potential contractors. Cooperation with KUKE Finance also gives you access to the expertise and experience of our specialists.
Export factoring ensures safe cooperation with foreign contractors. Often, an exporter wants to collaborate with new customers but cannot reliably assess their financial situation and ability to meet obligations. This significantly increases the risk of losing receivables. It is worth remembering that dealing with a delinquent contractor and recovering lost receivables abroad is generally much more complicated and costly than in the local market.
In this situation, the appropriate solution is non-recourse export factoring. The essence of full-service factoring, along with financing, is absorbing by the factor the risk of insolvency of the contractors covered by the factoring agreement. This is possible thanks to the factor’s own receivables insurance or the use of an existing receivables insurance policy held by the entrepreneur with an insurer. It is the insurer who verifies the recipient, and in the event of the contractor’s insolvency, handles the collection. In both scenarios, by signing a non-recourse international factoring agreement, the exporter eliminates the risk of non-payment by the recipient for delivered goods or services.
International factoring is also an effective way to hedge against exchange rate risk. The exporter receives cash from the factor immediately after shipment and invoicing, rather than after the invoice payment due date, when unfavourable currency exchange rate changes may occur. This is particularly important taking into account the increasing level of political and economic uncertainty worldwide.
Factoring provides instant access to cash tied up in unpaid invoices. You will no longer have to wait for customer payments in order to settle your own liabilities on an ongoing basis.
Your company will become more competitive, which may result in an increase in the number and value of new orders.
You will no longer have to worry about bad debt. Factoring company takes on the risk of non-payment by your customers.
As your business grows and sales increase, so does the amount of cash available from the factoring company that purchases your invoices.
The factoring company will handle managing and collecting payments from customers. The time and effort spent on these time consuming activities can be redirected to your company’s core business.
You get quick and easy access to cash 24/7 without the need to use traditional and more complicated forms of financing such as bank loans.
