Financial management The cost of service: 1% of amount of contract, but not less than US $ 1.700
Consulting on foreign exchange transactions and financial management
In the context of cooperation with the company “Intermediario”, our customers receive a preliminary
calculation of the value of the foreign trade contract and the answers to 3 main financial questions:
WHEN TO PAY?
According to the terms of payment: advance payment, prepayment, payment against documents, deferred payment.
HOW TO PAY?
Payment methods: bank transfer, documentary collection, letter of credit.
MEANS OF PAYMENT?
Means of payment: cash in a certain currency, the search for additional financing and lending.
Also, we will help insure the transaction against financial risks and, as part of hedging foreign exchange transactions, we offer:
- Drawing up a forward contract.
- Drawing up a futures contract.
- Drawing up a contract with the terms of a currency option.
To meet the requirements for deferred payment in international settlements, Intermediario offers the services of factoring companies.
Factoring is a financial instrument that allows a buyer to buy a product or service with a deferred payment, and a seller to sell a buyer’s receivables with a discount and maturity that are acceptable to the parties. With factoring, an assignment of receivables occurs. For an additional fee, you can get a service to collect future payments from a foreign buyer, as well as to maintain accounting and currency control.
Features of factoring:
- Export factoring is a short-term instrument that works with delays of no more than 180 days.
- The factor is entrusted with the collection of future proceeds, but this does not relieve the seller of the responsibility under the export contract, including for the repatriation of funds.
- Registration of assignment rights is possible only for non-overdue receivables.
Stages of international factoring:
The two-factor model of international factoring works between the members of the global factoring association Factors Chain International
- Conclusion of an export contract, under which the exporter receives an order from the buyer for the supply of goods.
- The exporter sends information about the buyer to the export factor for the approval of the factoring limit.
- The export factor chooses the import factor in the buyer’s country and enters into an agreement with him.
- The import factor assesses the buyer’s business reputation and creditworthiness and sets the credit limit
- Exporter and export factor conclude an international factoring agreement.
- The exporter ships the goods to the buyer’s address.
- The documents confirming the fact of shipment are transferred to the export factor. At this moment, the assignment of receivables occurs.
- The export factor pays financing to the exporter.
- Export factor assigns receivables to import factor.
- After the expiration of the grace period for export delivery, the import factor receives proceeds from the buyer.
- Revenue in full goes to the account of the export factor.
- The export factor transfers the proceeds to the exporter in full minus the previously paid financing; after which the transaction is considered completed.
Advantages of the two-factor model:
- Guaranteed payment for delivery by the import factor (due to the provision of credit coverage).
- Removing credit risk.
The client’s finances are managed in the form of providing analytical and consulting services and assistance in collecting a package of documents. The management strategy is determined based on the needs of the client, the solution of the tasks is achieved by coordinated methods.