International factoring: the solution for financing your exports

What is factoring?

Factoring involves transferring your export invoices to a factor (a specialized company), who immediately advances you part of the amount, generally between 70% and 90% of the receivable. Once your customer has paid the invoice, the factor pays you the balance, after deduction of its costs. International factoring is based on the same principle, but with customers abroad.
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The three pillars of international factoring :

Why use international factoring?

If you work with customers outside France, you know that payment terms can vary greatly from one country to another. Added to this are cultural differences, regulatory constraints and sometimes foreign exchange risks.

International factoring enables you to :

• Reduce your payment times: stop waiting 60, 90 or even 120 days for payment.
• Secure your collections: protection against the risk of customer default.
• Maintain a healthy cash position: essential for paying suppliers or investing.
• Outsource accounts receivable management: follow-up of reminders and collection by the factor.
• Facilitate your international growth: accept more contracts without worrying about your cash flow.

ℹ️ Case in point: A French SME specializing in e-commerce wants to develop its sales in Spain and Italy. The payment terms of its foreign distributors sometimes reach 90 days, which weakens its cash flow. Thanks to Karmen, the company transfers its export invoices and obtains an advance representing the majority of the invoiced amount within 48 hours. This enables the company to pay its suppliers and continue to invest in its development, without suffering from payment delays.

How do you choose your international factoring partner?

Before signing a factoring contract, several criteria should be carefully considered:

• Geographical coverage: not all factors operate in the same areas. Check whether your target countries are covered.
• The level of advance offered: generally between 70% and 90% of the invoice amount, but varying from sector to sector.
• Fees and commissions: analyze the pricing structure (management fees, financial fees, commissions).
• Customer service and digital tools: real-time monitoring via an online platform makes day-to-day management much easier.
• Risk management: some players include credit insurance in their offer, further reducing the risk of non-payment.

Issues to consider before resorting to international factoring

International factoring is not just a question of financing: it has a direct impact on your commercial relations with your customers and your financial strategy. Here are the main points to bear in mind:

• Impact on your margins: factoring costs must be integrated into your pricing policy.
• Customer relations: the intervention of a factor can change your customers' perception of your company.
• Contractual commitment: some factoring contracts require exclusivity for all or part of your export sales. Other factoring solutions, on the other hand, offer this service without commitment.
• Confidentiality: depending on the type of contract (notified or confidential), your customers may or may not be informed of the use of a factor.

To help you take a broader view of your expenses, we provide you with our budget forecasting tool.

Plan your cash flow and strengthen your financial structure

International factoring is not just a tool for collecting your trade receivables, it's also a lever for optimizing your working capital and strengthening your company's financial structure. By anticipating due dates and adapting disbursements to cash requirements, you can reduce pressure on your working capital and secure your receivables.

Thanks to optimized financial management of accounts receivable, invoicing and dunning, your company has better control over its cash flow, payment deadlines and working capital requirements, guaranteeing sustainable international growth and stable, controlled cash flow.

Karmen offers you 100% digital international factoring

For a long time, financing your export receivables was seen as a cumbersome process reserved for large companies. But digitalization has changed all that. Today, players like Karmen offer faster, 100% online financing solutions tailored to the specific needs of SMEs, VSEs and fast-growing companies.

Karmen Factor 's solution combines digital simplicity, speed of execution and non-dilutive financing, enabling managers to remain focused on growing their business rather than on the administrative management of collections.

Thanks to digital tools :

• Solvency analysis is accelerated,
• Administrative procedures are streamlined,
• Tracking financial flows is more transparent,
• Above all, you retain control over your financing choices.

Our non-dilutive approach guarantees access to funds without giving up capital shares, thus preserving the company's freedom and growth. By combining speed of execution, flexibility, rapidity and coverage of customer risks, Karmen becomes a reliable partner for international expansion.

Conclusion: a lever for international growth

International factoring is a strategic tool for companies wishing to accelerate their export development while securing their cash flow. By offering rapid financing, outsourced management and coverage against the risk of non-payment, it enables managers to concentrate on their business and growth projects.

To assess whether international factoring is right for your company, it's essential to understand its advantages and disadvantages. But it's also essential to compare available offers and choose a partner capable of combining financial expertise, international coverage and personalized support for your company.