Taking your business internationally can enormously increase your sales potential, there’s no doubt there. But the devil is in the details. Establishing international business relationships and handling the logistics of payments and shipments can be a nightmare. This is one reason why commercial factoring is a popular practice for companies that do business overseas.
The reason is that major factoring companies have already built extensive global networks of business relationships. So while it may be your first time dealing with a South-East Asian distributor, your factoring company may be an old-hand in the region. Thus, by leaving the task of collecting payments to them, you’re gaining the benefits of that international relationship without investing valuable time and resources.