Export finance

18 December,2018 | main author

One minute guide.

What is it?

Export finance helps exporters to offer credit to their buyers. This means that they can offer "ship now, pay later" terms to buyers - and this is what buyers want.

Export finance is provided by a specialist like PrimaDollar.

  • We pay you, the exporter, in cash when you ship the goods.

  • The buyer, somewhere else in the world, pays us later.

  • We take the buyer credit risk, and you do not have to wait for the money.

This improves your cash flow, reduces your risk, and allows you to win bigger orders from your buyers.

What are the key features of export finance?

It is a simple product.

  • Payment term: agree how much time your buyer wants before he should pay for the goods that you ship him. Buyers like to be offered the chance to receive the goods and then to pay later. This shows the exporter has confidence in his products, and allows the buyer time to sell the goods, which helps his cash flow.

  • Price: agree the charge with PrimaDollar. Our pricing is simple. For example, if you want to give the buyer 90 days to pay, we might charge 2% on the invoice amount. Our clients told us to work this way, so that they can easily manage our cost in their margins. Our pricing is inclusive of fees - so that there are no surprises.

That's it.

I am an exporter: how do I get export finance?

Export finance is simple, low cost and does not require any collateral or personal guarantees. It might be cheaper than the finance you get from your bank.

  1. Ask PrimaDollar for a limit on your buyer.

  2. Agree the charge with us - export finance is surprisingly cheap and nearly always cheaper than local alternatives - and we take the buyer credit risk. Our service starts from under 0.5% per month of credit (6% per year rate, all-in).

  3. Finalise your purchase order, shipping date and logistics.

  4. Make the goods.

  5. Send us the shipping documents, get paid.

  6. The buyer pays us later, and the buyer credit is our risk.

I am an importer: How can I get my suppliers onto finance?

Import finance is the same as export finance. The exporter ships, you pay later - PrimaDollar covers the gap.

  1. Ask PrimaDollar to give you a credit limit for your international suppliers. This costs nothing.

  2. Agree the charge with PrimaDollar and how you want it paid (paid by you, paid by the exporter). There is no free lunch here - if the exporter pays the charge, the unit price will go up a little bit.

  3. Introduce PrimaDollar to your exporting suppliers and let us on-board them.

  4. Move everyone onto a "ship now, pay later" basis.

How do I find out more about export finance?

With 10 offices on three continents, talk to us: click here to connect to your local office. You can also read further articles on our site:

Recent Posts


Export finance

One minute guide. What is it? Export finance helps exporters to offer credit to their buyers. This means that they can offer "ship now, pay later" terms to buyers - and this is what buyers want. Export finance is provided by a specialist like

592      0
0

PrimaDollar

One minute guide. Who is PrimaDollar? PrimaDollar is a UK-based trade finance platform working with exporters and importers on a global basis. What does PrimaDollar do? PrimaDollar

103      0
0

Dual factoring

One minute guide. What is it? Dual factoring is the process of coordinating two factoring companies so that one of the companies can purchase an invoice from an exporter in one country and relying upon the other factoring company to collecting the amount due

88      0
0
Log in to leave a comment!