Will the factoring be cost effective?
Answer: If one considers the comparisons of credit insurance and bank facilities, Letters of credit etc. then the actual costs are comparable. What is more difficult to calculate are the added benefits of using factoring service. Having access to a source of finance that is geared to the growth of your business can help you to achieve much higher level of profit. Cost savings in the administration and collection of debts can be significant but so can the savings in the reduced interest charges that result from the shorter credit periods. From the other hand, the greater level of credit coverage compared to the conventional export insurance provides you with additional guarantee which is needed for the growth of your business.
How will my customers react?
Answer: Your customers would welcome the idea of factoring service if you explain them that they would be able to pay on open account terms rather than to pay in advance or use Letters of credit or bank guarantees. The opportunity of paying to domestic counterparty rather than making international bank transfers must also be considered as an advantage.
Which countries do you cover?
Answer: Postbank is a member of Factors Chain International (FCI). It is a global network of leading factoring companies, whose common aim is to facilitate international trade through factoring and related financial services. Through FCI, Postbank has established partner relationships with more than 260 correspondents from more than 70 countries in Europe, Southeast Asia and Americas. More information and full list of countries can be found on FCI website.