Factoring invoices in the USA?

Question posted by Roger Frampton, on behalf of ExportAction in Clearwater, Florida, USA

Our company assists UK SMEs establish, develop and operate business in the USA. We do almost anything and everything in the USA that a UK company does for itself at home.

For the first time in seven years, we have been asked to help a UK SME "sell their invoices at a discount" (factoring). We have identified a number of potential service providers for our client, but have no "hands on" experience of them.

Please can anyone suggest a potential factoring service based on real-life experience?

Thank you

Roger Frampton

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Hi Roger

I have only just seen this post so apologies for the long delay in responding and hopefully the question is still relevant. Even if 'the moment has passed', so to speak, the following info may still be useful for future reference.

We have recently introduced a cross border spot factoring facility for UK SME's who currently export to the USA on open account terms.

Unlike factoring - which requires all receivables to be included in the lending arrangement, along with certain monthly minimum sales requirements – spot factoring (also known as single invoice discounting) operates as a very simple ‘use it as you need it’ arrangement whereby a single invoice is purchased at a discount effectively turning the transaction into a COD sale. The service is quick and straightforward with a minimum of paperwork.

There are no long term commitments or contracts, no upfront fees or application charges and no minimum or maximum invoice value. The cost for each transaction is simply the difference between the invoice value and the discounted purchase price.

Please contact me for more info or check out our website: www.tradeconsult-associates.com

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