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RSSAustin, TX (PRWEB) June 17, 2014
This unique service is in high demand, as Chinese suppliers need to factor receivables due to cash flow shortages they encounter due to slow payments. Letters of Credit are the usual forms of payment but are getting antiquated in the new international business world.
Letters of Credit are usually stuffed with too many obstacles and loopholes that make collecting proceeds a hardship for the recipient. It is much easier to use 1st Commercial Credit’s factoring services and sell on credit terms than hassling with foreign banks trying to collect money on goods sold.
The purchase order financial product is seamless as no Letters of Credit are issued to suppliers. Proceeds are wired once the order has been verified so the suppliers really enjoy this type of service. This is a relatively unique process as most purchase order finance companies do not wire funds to China, they will only provide Letters of Credit on behalf of their customer.
This is also advantageous to U.S based companies that have money tied up with open Letters of Credit to Chinese suppliers. Companies must outweigh the transaction fee if they are turning away sales in high peak seasons due to lack of cash flow. Ultimately, the fees must be compared using all financial alternatives available and see if the cost will justify losing out on sales and growth.
1st Commercial Credit is headquartered in Austin, Texas. Provides accounts receivable financial services in the USA, Canada, and the UK; offers export trade finance to clients in every major world market and can convert receivable finance transactions in 17 currencies. For more information about 1st Commercial Credit’s International Trade Financial Services please call 1 800 876 6071 or submit online at http://www.1stcommercialcredit.com.