Trade Finance India

Export factoring, also known as invoice financing or account receivable financing, is a technique in which a financial intermediary purchases a company’s receivables and advances cash to their business. This type of financing is different than a traditional bank loan for a few reasons. First, unlike bank loans, it does not show up on a company’s balance sheet as debt. Also, small to mid-sized businesses can more easily qualify for export factoring because this financial service often does not require collateral. Furthermore, the funding from export factoring is based on the creditworthiness of a company’s customers rather than the borrower’s own financials.