How Can Export Factoring Help My Plastic Manufacturing Business?

If you run a plastic manufacturing business, you understand the competitiveness in today’s marketplace. With the help of international trade finance companies, you can get onboard with export factoring, which can help your business grow and thrive; you will have a package that includes credit protection, collection services, export working capital financing, and accounts receivable bookkeeping on an international level.

The plastic manufacturing industry is growing globally, from pharmaceuticals to chemicals. So, companies are looking for fast funding that allows them to strategically place themselves ahead of the competition in the global marketplace. When your business works with one of the best factoring companies, you can access financing on sales with payment terms set for 120-day open account, which will allow your company to work with a customer base that is broader and more diverse. This enables faster access to funds, which will make working capital more available for you.

How Trade Finance Helps Plastic Manufacturing Businesses Excel

Factoring is a financial process that allows a business to sell its accounts receivable – also referred to as invoices – to a third-party for an advance on payment. A plastic manufacturing business will factor its receivables so it can meet any present or immediate cash needs.

Not Having Access to Funds Can Lead to Stagnant Growth

Even if your plastic manufacturing business has the latest technology and the best equipment available, it will not be able to reach its full potential without adequate working capital. Cash allows you to have relationships with a broader range of foreign buyers who require more extended payment terms. When you work with a factoring company, you can access those funds today while your buyers can enjoy extended terms and get the products that they need from you.

Why You Should Get Started with Export Factoring

You are left with an account receivable, which you will hold in your books until the customer pays the invoice. Meanwhile, you still need to cover the costs of producing those goods.
You risk the client not making payment due to neglect or insolvency.
An international trade finance company like Tradewind can help alleviate these risks. Their business is to take care of your export factoring needs. You sell the goods to the client through the finance company. You will receive up to a 95% advance on your invoices – usually within 24-48 hours. When the contract matures, the factoring company will collect the funds from the buyer and forward you the balance.

Meanwhile, your suppliers – where you receive your materials for plastic manufacturing – are paid promptly. They are now willing to extend you additional credit to ensure that your supplies are delivered without hesitation. It becomes a win-win solution for all parties involved. Working with a trade finance company like Tradewind will keep your plastic manufacturing business financially strong allowing the business cycle to run smoothly.
To know more: https://www.tradewindfinance.com/news-resources/how-can-export-factoring-help-my-plastic-manufacturing-business