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.
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. You can export finance directly from us, or discuss your need with your logistics provider and ask him to contact us. Many logistics companies work with PrimaDollar.
- Ask PrimaDollar for a limit on your buyer.
- Agree the charge with us – check our export finance calculator: here.
- Finalise your purchase order, shipping date and logistics.
- Make the goods.
- Send us the shipping documents, get paid.
- The buyer pays us later, and we take the buyer credit risk.
I am an importer, how can I get my suppliers paid?
You need Suppy Chain Trade Finance. Find out more about Supply Chain Trade Finance here.
Import finance is the same as export finance. The exporter ships, you pay later – PrimaDollar covers the gap. But usually this should be arranged as a program for all your exporters, which can be added on to an existing supply chain finance program or implemented shipment-by-shipment.
- Ask PrimaDollar to give you a credit limit for your international suppliers. This costs nothing.
- You can use our funding, or you can work with your own funders – most of whom already know us and are already happy to work with us and our structures.
- Agree the charge with PrimaDollar and how you want it paid (paid by you, paid by the exporter).
- Introduce PrimaDollar to your exporting suppliers and let us on-board them.
- Move everyone to “ship, get paid”.
How can I find out more?
With a global network and global coverage, talk to us.