International factoring is an essential service that facilitates trade across borders. As of 2016, world international factoring was 507,112 Euros (approximately $600 million), according to Factors Chain International, the largest global factoring network.
The availability of cash, cashflow, is critical for small and medium-sized enterprises (SMEs) to be able to participate in the global market, as these entities often cannot weather a significant delay in payment for a contract. Factoring allows businesses operate by supplying cash quickly so they can continue to fulfill their financial obligations whether is be covering payroll or ordering materials, as a deal is in progress. However, factoring is far from being a risk-free enterprise.
Here’s What’s Keeping You Up at Night…
When a factor purchases accounts receivable from a seller, the expectation is that the invoice in question will be paid within a relatively short time frame. This isn’t always the case. Serious delays in payment or outright nonpayment can be devasting to your business, and the effort to collect on outstanding debt can involve a significant investment of time. Even worse, each country in which you operate is likely to have different regulatory requirements that dictate how you can pursue collections, making the task even more complicated. Making a mistake in how you proceed can drag the process or even worse, getting stuck with dead invoices.
Speed-Up Collections on Over Due Invoices
This is why it is essential for an international factor to have an international debt collection specialist. A firm with expertise in the elements that make collecting debts in foreign countries challenging and with specific knowledge of the regulations in the local region can help you avoid costly missteps. Furthermore, having local agents on the ground can help not only avoid the hassles of communicating across multiple time zones, but also break down language barriers and navigate local customs to keep conversations amicable and productive.
Is Local International Debt Recovery a Part of Your Business Strategy?
At Cedar Financial, we found our business practices on respect and professionalism. We know that the success of debt recovery depends on diplomacy, persistence, and a full understanding of the circumstances. We have local coverage on six continents, in every country where collections are offered. Our experienced negotiators have the skill and motivation to successfully collect on debts that may have been considered unrecoverable. Our first approach is always to strive for a cooperative solution to help produce a mutually beneficial outcome and preserve professional relationships.
Cedar Financial is committed to facilitating your international business transactions and preserving your company’s reputation. We can provide international credit checks on prospective business partners so you can make informed decisions on how to proceed. We can trace customers who have disappeared so that you can pursue debt recovery efforts. Finally, we offer a full range of debt collection services from initial contact up to recommending appropriate legal action, if necessary, giving you the choice throughout of how you want to proceed.
If you have an outstanding international debt, Cedar Financial can help you. We have the expertise you need to efficiently work toward getting paid, without ruining the good business relationships you’ve worked hard to achieve. Contact us today to draw up a plan of action with our trained consultants.