International Factoring is based on the “Two Factors” System: a Factor working in the exporter’s country (Export Factor) manages the relationship with the transferor and uses the services of a factoring company operating in the debtor / importer’s country (Import Factor), who takes care of relations with the debtor in order to collect the transferred credits.
The primary value added offered by this service is more accurate assessment of credit risk and the greater ability to manage credit offered by factoring companies which are fully integrated into the market in question.
International Factoring is normally Without Recourse, insurance claim time is limited (max 90 days) and it is a less costly alternative to the letter of credit.