Import and Export Financing

For many companies, doing business internationally is the ultimate challenge. While the rewards can be substantial, success can also bring its share of problems. Different customs, currency issues, legal requirements and businesses practices create barriers to trade in a world where sophisticated computer technology allows foreign orders to be placed within seconds.

One of the greatest problems facing importers and exporters is the increasing insistence by customers that trade is conducted on open account terms. This often means that payment is received many weeks or even months after delivery. Unsurprisingly, many companies find that extending credit to clients and customers in this way can cause severe cash flow problems. Further problems can arise if the customers delays payment beyond the originally agreed upon terms or makes no payment at all because of financial failure.

Alpha Capital provides simple and timely finance solutions to Importers and Exporters regardless of whether your company is a small organization or a major corporation.

Benefits for Exporters

International factoring has many advantages for exporters by outsourcing credit and payment collection activities. All fees paid to Alpha Capital are based on sales volume and point-of-sale services so there are no up-front fees or fixed operating costs when sales are slow. This makes international factoring more economical as a ‘pay-as-you-go’ system.

Benefits for Importers

Until recently, the Letter of Credit was the universally accepted way to do international business. But in today’s fast-moving world of international trade, importers are much less enthusiastic about accepting the financial burden put on them under the Letter of Credit system.

The benefits of an import and export financing relationship with Alpha Capital include:

  • Reducing time-consuming credit administration
  • Protection against credit losses
  • Reducing risk while offering foreign customers competitive open account terms
  • Accelerated cash flow as a result of faster payment collection
  • Liquidity to boost working capital
  • Better borrowing potential and an opportunity to make use of supplier discounts

Here are some of the advantages international factoring with Alpha Capital offers to importers: 

  • The opportunity to buy goods using convenient open account terms
  • Removing the need to open Letters of Credit
  • Expanded purchasing power without using up existing lines of credit
  • The ability to place orders swiftly and without having to pay Letter of Credit charges, negotiation fees, etc