Solution

Export Finance

If you are selling to overseas customers and want a simple open account invoice process, then export finance is for you. There are many advantages to export finance like accelerating your overseas business growth.

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What is it

Export Finance is sometimes known as an Export Overdraft. If you’re looking to grow your overseas customer base, releasing working capital in the process, then UK Export finance is ideal for you.

We allow you to make use of our cross-border partnerships with 65 participant countries across the EU and most OECD nations. As long as we can get credit insurance, you will be able to invoice as usual and we will take care of verification and collection.

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How it works

You have business clients that you invoice on agreed payment terms which could be from 30 to 90 days, but you need the cash now in order to keep your business running.

Some factoring companies lock you into a long-term contract for all of your invoices with a minimum monthly utilisation. Then they charge fees for everything from admin to late payment penalties. With export finance, we have simplified it.

  • As soon as credit approval has been given for your overseas customer, the goods can be shipped, and you invoice as normal.

  • There is no need for letters of credit, bills of lading or inspection certificates. Our overseas partner will verify the debt in the customer’s own language and carry out collection as is normal within the customer’s business culture.

  • As soon as you provide us with proof of delivery, you can draw down on the funds.

  • When your client settles the bill with us, we pay you the invoice amount, adjusted for any FX differential and less our fees.

Our Fees

The fee for export finance is shown as a percentage of the amount advanced, but it’s calculated using several factors:

  • the actual amount advanced,
  • the number of days from draw down until your customer settles the amount,
  • credit experience with the customer,
  • fees incurred as a result of sending non-GBP payments.

Top Tip

Don’t assume that other cultures do business in the same way as you.

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