Export Factoring
We arrange export factoring that converts foreign receivables into predictable cash. The product is an outright purchase of invoices with clear assignment mechanics, disciplined eligibility, and a collections framework that lenders accept. Options include non recourse for insolvency and protracted default, disclosed or silent, and maturity or advance structures with FX handling.
Snapshot:
Advance rate 80 to 90 percent. Reserve 10 to 20 percent released at collection net of fees. Tenor up to 120 days standard. Concentration limits by buyer and country. Non recourse available when supported by credit insurance or strong buyer ratings. Funding in USD, EUR, GBP and major trade pairs with FX settlement options. Works alongside our
Procedure
and
How It Works
pages.
What Financely Delivers
- Underwriting of buyers, countries, and terms to set advance rates, reserves, and limits.
- Purchase and sale agreement wording with objective eligibility tests and clear assignment.
- Collections architecture with notified accounts, lockbox or trust accounts, and cash application rules.
- Integration with credit insurance or confirmations to support non recourse treatment.
- FX workflow for billing and settlement in multiple currencies, with netting and rate evidence.
- Funder alignment so invoices convert to cash at pricing that reflects expected loss and costs.
Structures And Reference Terms
1. Disclosed Non Recourse
- Use
exporters with rated buyers or insurance support.
- Advance
85 to 90 percent of invoice face.
- Reserve
10 to 15 percent released at collection.
- Notice
buyer is notified and pays into controlled account.
- Risk
insolvency and protracted default borne by factor per policy and wording.
2. Silent With Recourse
- Use
strategic accounts where notification is sensitive.
- Advance
80 to 88 percent with tighter concentrations.
- Reserve
12 to 20 percent with dispute cut offs.
- Risk
seller retains credit risk; factor funds against eligibility and controls.
3. Maturity Factoring
- Use
exporters with strong liquidity who want certainty of payment date.
- Payout
100 percent at due date less discount and fees.
- Risk
non recourse possible with insurance or approved buyers.
4. Insurance Backed
- Use
broad buyer base across multiple countries.
- Mechanics
policy assigned to funder with loss payee status.
- Benefit
non recourse eligibility and improved advance rates.
Pricing And Economics
| Component |
Reference Range |
Notes |
| Discount Rate |
SOFR or EURIBOR plus 350 to 850 bps |
Driven by buyer risk, tenor, and country |
| Service Fee |
25 to 120 bps of purchased volume |
Covers monitoring and collections |
| Dilution Reserve |
2 to 8 percent |
Based on credit note and dispute history |
| Minimums |
Monthly or annual throughput tests |
Waived for seasonal programs by arrangement |
Final pricing depends on buyer mix, country split, tenor, insurance structure, FX, and collections performance.
Eligibility And Data Room
| Item |
Details |
| Buyer List |
Top 50 buyers with terms, country, and annual volume |
| AR Aging |
Twenty four months, write offs, recoveries, and disputes |
| Contracts And POs |
Master terms, Incoterms, and proof of delivery mechanics |
| Collections Setup |
Bank accounts for notification, lockbox, reconciliation rules |
| KYC And Insurance |
Corporate pack, UBO, sanctions, and any existing policies |
Process Timeline
Days 1 to 3
Data room intake. F-TFRS scoring of buyers and countries. Preliminary advance and reserve grid.
Days 4 to 7
Term sheet and eligibility criteria. Collections and notification plan. Insurance or confirmation checks if non recourse.
Days 8 to 12
Legal documentation. Account setup. Buyer notices where disclosed. FX workflow agreed.
Days 13 to 15
First purchase and settlement. Reporting calendar and limit review cadence set.
Fees
- Underwriting retainer
USD 59,500 at mandate, credited against closing fees.
- Success fee
payable at signing of the facility, sized to program scope.
- Ongoing fees
discount rate and service fee per the pricing schedule.
Frequently Asked Questions
Is export factoring available without notifying my buyers?
Yes. Silent structures are possible with tighter controls and lower advances. Disclosed factoring supports higher advances and simpler collections.
Can the program be non recourse?
Yes when supported by credit insurance, confirmations, or buyer quality. Non recourse applies to insolvency and protracted default as defined in the documents.
Do you fund VAT and taxes?
Usually no. Funding is on net invoice value excluding VAT and duties unless a jurisdiction allows clean segregation and recovery evidence.
How are FX risks managed?
We set billing and settlement currencies up front. Hedges or natural offsets are documented. Rate evidence is attached to settlements to lock audit trails.
What happens with disputes?
Dispute cut offs and cure periods are set in the eligibility criteria. Dilution reserves and holdbacks protect the funder until resolution.
Request Export Factoring Terms
Share your buyer list, AR aging, contracts, and target advance rate. We will return a funder map, pricing schedule, and a collections plan you can execute.
Request Terms
Financely acts as an advisor and arranges facilities through regulated partners. We do not custody client funds. All engagements are subject to underwriting, KYC, AML, sanctions screening, and final approvals by funding counterparties and insurers. This page targets professional clients and eligible counterparties only.