What is international factoring?
Factoring offered to export sellers rather than to domestic sellers is commonly known as International Factoring.
International factoring is now universally accepted as vital to the financial needs of small and medium-sized exporters. It has the support of government bodies and central banks throughout the world and more and more large exporters are using international factoring as well, but sometimes selecting only a limited number of services rather than the complete package.
As international trade continues to increase, so too do the opportunities for the factoring industry. Because international factoring works in a similar way to domestic factoring, exporters have realised that it can help them to become more competitive in complex world markets.
Many businesses that turn to factoring companies are reassured to know that the industry is closely associated with the banking sector. Although factoring companies remain highly specialised institutions, nearly all major banks now have factoring subsidiaries. This has enabled the industry to promote its services with great success and to work for businesses of every size.
Factoring has become well established in developing countries, in particular in those that are highly industrialised. In various Asian countries, the growth of factoring has been dramatic while in Latin America, financial institutions continue to join the industry. Similar growth has occurred in Central Europe, the Baltics and the Middle East.