Trade Financing Basics

Hello Gang.

I am starting a back to the basics week. We are going to review most of the alternative business financing tools that are out there.

Factoring Financing: Invoice factoring is a tool that provides you an advance on your slow paying invoices. The biggest requirement to qualify for factoring invoices is that you do business with reputable customers

Purchase order funding: PO financing provides you with funds to pay suppliers, enabling you to deliver your large orders. The transaction is settled once your customer pays their receivable.

Trade financeing: A general term for financing tools that enable trade, such as export finance and import export financing. Factoring and PO financing are also considered trade financing, as is export factoring.

Have a great New Year

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