Cross-border factoring

Cross-border factoring

Concluding a transaction by a network of factors across borders. The exporter's factor can contact correspondent factors in other countries to handle the collection of accounts receivable.

Cross-Border Factoring

Concluding an international transaction by using a more than factor; that is, an institution that buys others institutions' accounts receivable. In this situation, an exporter sells its accounts receivable to a factor, which then contacts other factoring institutions in order to collect what was owed to the exporter. This helps the exporting business because it may divest itself of credit risk (and perhaps currency risk as well).
References in periodicals archive ?
A further use is for small firms that are considering a move into export markets for the first time, where cross-border factoring could reduce the initial payment obstacles that are often faced.
domestic sales; borrowing against export receivables; legal issues around financing export sales and using cross-border factoring and forfaiting to finance exports, manage risks, and outsource credit and collection activities.