Export Factoring For Furniture Industries
India is one of the largest exporters for furniture and accessories in the world with trade relations with 169 countries across the globe. As of FY22 the Indian Furniture and Accessories Export businesses have made international sales estimated at US$ 366 million. The Furniture and Accessories industry has seen an year on year growth of 10% and is set to grow to a billion dollar sector soon. Read more
What is Export Factoring
An international trade financing option called export factoring involves a financier purchasing and managing an exporter's receivables against the items they have supplied to foreign customers. With this kind of finance, the exporter of furniture and accessories can quickly produce working capital and subsequently increase their investment in potential new growth prospects.
It is best suited for:
- Exporters who are established in the industry
- Exporters wanting to provide more flexible open account terms to their buyers
- Exporters looking to mitigate the risk of payment defaults
- Exporters who need immediate liquidity for rapid growth.
How Export Factoring Can Help Furniture and Accessories Exporters
As a trade export financing method for furniture and accessories, export factoring offers both long-term and short-term advantages. Traders - Immediate Liquidity - By having the financier purchase the outstanding invoices, the exporter can obtain liquidity right away rather than having to wait the customary 60–90 days. and receive money into their operating capital right away instead.
Better Cash Flow Cycle
Since the exporter is receiving payment for their bills right away, they may keep a steady cash flow and make investments for growth.
The lender automatically assumes responsible for collecting the receivables as soon as they buy the outstanding invoices from the exporter. The exporter can now concentrate on their corporate goals as a result.
The majority of export factoring alternatives finance 80–90% of the outstanding receivables to the exporter right now, thus lowering the risk of payment defaults they might have had to deal with.
Competitive Edge Over Competitors
The export market for furniture and accessories can be very cutthroat. Therefore, it stands to reason that companies with more liquidity to take advantage of fresh opportunities will dominate the market.
Why Choose KredX GTX For Your Furniture and Accessories Export Business?
KredX GTX (KredX’s Global Trade Finance Exchange), is an innovative and fully digital platform that enables Furniture and Accessories Exporters to find post-shipment financing at the lowest rates.
Transparent Bidding System:
Discover multiple flexible trade financing options with competitive rates.
Performance Based Financing:
Find non-recourse collateral-free post shipment financing.
Large Pool of Financiers:
Get access to a selection of domestic and international financiers.