We are a complementary tool to local factoring solutions

One of the biggest challenges faced by a local businessman is to enter international markets, since he faces difficulties in accessing favorable credit, which limits, on a large scale, his import and export business with customers abroad. The first impediment they encounter is that most local banks cannot attend international operations, due to existing legal restrictions.

It is for this reason that, in an expansion process, an international factoring company is an invaluable partner to undertake and sustain in international markets.

Why is international factoring worthwhile?

“One of the most frequent problems in the area of international trade are the few tools that exporters have access to in order to analyze the profile of their clients abroad, forcing them, in many cases, to run the risk of default, generating delinquency in their accounts receivable and economic losses in the development of their activity” (taken from colombiafintech.co).

Under this perspective, Mutuo Capital, specialist in international factoring, is in charge of being that support for the negotiations: it buys the invoice receivable from an exporter in one country and collects it from its buyer (importer) located in another country. The exporter receives payment in advance by means of a discount against the invoice. The reimbursement comes from the revenue paid by the buyer (importer) on the due date of the invoice.

Now, foreign trade in Colombia and other Latin American countries is rapidly gaining the approval of large companies that want to develop, because they see a great opportunity to achieve high income with customers from other countries. However, the risks associated with foreign trade must be taken into account. It pays to be cautious. It often happens that payment terms for foreign invoices are very long. Waiting for funds, possible delays in repayment and the risk of encountering an insolvent partner definitely make choosing international factoring the best decision for expanding any business internationally.

With Mutuo Capital, a company in global expansion secures its interests and avoids payment stoppages or financial liquidity problems. In addition, factoring allows the company’s current operations to be financed before invoices are paid and protects against exchange rate risk, since payments are made immediately.

Want to expand your business overseas without the risk of uncollected invoices? Mutuo Capital is becoming an increasingly respected mechanism for securing the interests of expanding companies.

International Factoring has come to stay.

Find out more about the exact process of International Factoring! Contact us.