Outsource Receivable

Accounts receivable factoring is the sale of your accounts receivable (invoices) at a discount off the face value in return for immediate cash.

Accounts receivable factoring is the sale of your accounts receivable (invoices) at a discount off the face value in return for immediate cash. The funding source is known as the factor or trade finance company. The primary benefit is to provide immediate working capital and protect you from business (credit risk) losses. The factor may assume the responsibility for the customer’s financial ability to pay and perform credit, collection and related bookkeeping functions.

How Account Receivable Factoring Works

You deliver a product or service and issue an invoice to your customer. The factor typically advances an initial payment of 70-90% of the invoice amount within 24 hours, less the factoring fee. When your customer pays the factor, the factor pays you the remaining percentage of the invoice, minus borrowing costs.

Export Financing Options

Favorable export financing can enhance your international sales efforts, giving you an advantage over your competition. Through its financial expertise and established lender relationships, One Source will develop the best export options for your business. Factoring is available for most markets.

Factoring Benefits

  • Expand your business through increased, dependable cash flow 
  • Increase profitability 
  • Protect against losses due to default (optional) 
  • Reduce purchasing and financing costs 
  • Outsource your credit and collection management 
  • Provide accurate and timely credit information on your customers 
  • Expand export sales


Credit Insurance

Covers 2 types of risks –

  1. commercial and political risks.
  2. Insolvency of the buyer
  3. Non-payment by the buyer

Surety Bonds

  1. Bid Bond: Provides financial protection to the owner if a bidder is awarded a contract but fails to sign the contract or provide the required performance and payment bonds.
  2. Performance Bond: Provides an owner with a guarantee that, in the event of a contractor’s default, the surety will complete or cause to be completed the contract.
  3. Payment Bond: Ensures that certain subcontractors and suppliers will be paid for labor and materials incorporated into a construction contract.
  4. Warranty Bond (also called a Maintenance Bond): Guarantees the owner that any workmanship and material defects found in the original construction will be repaired during the warranty period.

Trade Finance

An exporter of goods runs the risk that they are never paid for goods that are shipped. To eliminate that risk they can require pre-payment, but that shifts the risk onto the importer.
Overseas trade also comes with inherent risks, for example, exchange rate fluctuations, legal issues, language differences and the potential for political instability. Furthermore, it’s trickier for parties to evaluate the credit risk of their counterparts when they’re based overseas.
Trade finance steps in to guarantee payment and shipment, provided certain conditions are met.