Export Import Factoring
| Factoring is a form of credit granting by Eximbank to exporters through the purchase of the receivables arising from the goods purchase and sale as agreed by the exporters and importers in foreign trade agreements.
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| Export factoring services: |
| - Insurance of Importer’s Credit Risks. |
| - Maintenance of receivables. |
| - Advance payment of up to 90% of the value of receivables. |
| - Debt recovery. |
| 2. Advantages of factoring |
| For exporters |
 Raise working capital to enlarge business and production and develop the market.
Increase the competitiveness when selling goods under D/A and deferred T/T.
Save time and costs in managing and collecting receivables.
Insured for Importer’s Credit Risks in respect of receivables.
Supported with the financial conditions and business situation of the importers. |
| For importers |
No factoring fees.
Able to buy goods under deferred payment.
Use credits of the sellers to finance working capital.
Only pay when goods meet the requirements of foreign trade agreements.
No need for LCs for each import and no security. |
| Installment factoring, factoring by limits. |
Exporters who desire to enlarge the market, be insured for Importer’s credit risks and receive advance for the deferred receivables, etc.
Importers who purchase goods under deferred payment. |
| 6. Conditions for factoring |
| In terms of goods |
Must be tangible assets.
Factoring is only carried out after goods delivery.
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| In terms of foreign trade agreements |
The transfer of receivables by the exporters to a third party is not prohibited.
Rights and obligations in foreign trade agreements are not assignable.
In correspondence with law stipulations.
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| In terms of receivables |
Not arising from foreign trade agreements prohibited by laws.
Not arising from illegal or disputed transactions or agreements.
Not arising from foreign trade agreements in the form of consignment.
Not being foreclosed, pledged or mortgaged.
Not being overdue for payment under foreign trade agreements, etc.
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