What fees does international factoring include?

What fees does international factoring business include?

The fees for international factoring business include three parts:

(1) Guarantee The broker's commission is about 0.1-0.4% of the invoice amount for export factors and about 0.4-1% of the invoice amount for import factors. The commission ratio range determined by different factors is different.

(2) The processing fee for each invoice is approximately US$10.

(3) Bank fees.

If the export factor has provided financing to the exporter, can the export factor provide financing to the exporter when the importer and the import factor refuse to pay? Can the merchant recourse?

Whether recourse can be determined depends on the "Export Factoring Agreement" and the financing contract between the export factor and the exporter. Factoring business is divided into factoring with recourse and factoring without recourse. In the former case, when the payment cannot be recovered due to circumstances stipulated in the agreement, the export factor can recourse to the exporter in accordance with the contract; in the factoring business without recourse, the export factor has to bear the financial losses itself.

In developed countries such as Europe and the United States, non-recourse factoring is basically adopted. However, the factoring business has not been established in my country for a long time. In order to protect their own interests, factoring companies adopt certain factors. There are relatively more cases of recourse factoring.

What should I do if the importer fails to pay when due?

What if the importer has problems with the quality of the goods? If the import factor fails to pay due due reasons, the import factor will notify the export factor of the reason for the refusal, and the export factor will then notify the exporter; the factor will coordinate the import and export parties to resolve trade disputes.

If the dispute is indeed due to the exporter's failure to perform in accordance with the basic contract, the import factor can be exempted from payment guarantee liability. If the importer refuses to pay without reason, the import factor still needs to bear the payment guarantee and pay the export factor no later than 90 days after the invoice is due.

If the exporter fully performs the basic contract, but the importer encounters an emergency such as bankruptcy and is unable to repay the debt, the import factor must fulfill the payment guarantee , payment to the export factor.