For Exporters

Benefits for exporters:

• The exporter is able to give extended credit terms to its customers without affecting its cash flow.
• The exporter has the cash shortly after shipment has taken place.
• The exporter is better able to control its foreign exchange risk because the physical currency is in the account of the exporter.
• The credit risk relating to the exporters debtor is reduced by 90%.
• The credit assessment procedure and control of credit risk are reduced.
• The real cost of finance is competitive, especially considering that interest will be earned on the cash paid to the exporter (which is not the case in the event of holding a debtors book).