Export Factoring

Factoring is a financial arrangement whereby an exporter's accounts receivable are sold by the exporter to a factor who in turn collects the receivables on the exporter's behalf. Depending on the circumstances, some lenders are prepared to purchase the receivables on a non-recourse basis as opposed to on a recourse basis and we examine that. We look the timing of payment by the factor and how factoring compares to other export finance options.