export factoring

Meanings

1. 1noununcountablebusinessfinance

   A financial arrangement in which a company sells its foreign sales invoices to a specialist firm at a discount to get cash quickly.

   Grammar: Used as an uncountable noun: say 'export factoring is useful', not 'an export factoring'.

   Patterns

   • use export factoring
   • offer export factoring
   • export factoring services

   The small manufacturer used export factoring to get paid immediately after shipping goods abroad.

   Banks often recommend export factoring for companies that cannot wait 60 days for foreign buyers to pay.

   Export factoring transfers the risk of unpaid overseas invoices to the factoring company.

2. 2noununcountablebusinessfinance

   The business activity of buying and collecting other companies' export receivables for a fee.

   Grammar: Refers to the industry or service itself, not to a single transaction.

   Patterns

   • a company specializing in export factoring
   • the export factoring market

   Several firms specializing in export factoring operate in London and Singapore.

   The export factoring market grew rapidly as global trade expanded.

Common combinations

export factoring services

The bank offers export factoring services to small exporters.

use export factoring

Many exporters use export factoring to improve their cash flow.

export factoring company

An export factoring company buys your foreign invoices at a discount.

export factoring agreement

Before signing an export factoring agreement, check the fees carefully.

export factoring facility

The firm arranged an export factoring facility with a European bank.

Synonyms and how they differ

invoice factoring

A broader term that can cover both domestic and export sales, whereas export factoring specifically involves foreign buyers.

accounts receivable financing

This raises money using invoices as collateral rather than selling them outright, so the seller keeps the credit risk.

export finance

A general term for many kinds of funding for exporters; export factoring is just one specific method.

Word family

factor noun

A company or person that buys invoices at a discount.

factoring noun

The general business of buying invoices at a discount.

export verb

To send goods to another country for sale.

exporter noun

A person or company that sells goods abroad.

Commonly confused: export factoring or forfeiting?

Practice

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Write a sentence using “export factoring”, then check it and compare it with the examples above.

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