International factoring

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International factoring refers to a situation where:

  • The buyer and the seller of goods are in different countries and
  • One or more factors are involved in the related financing.

Two factor system

Due to the international character of the debt, two factors are often involved, one in the buyer's country (Import factor) and one in the seller's country (Export factor).

The two factors establish a contractual relationship to service the buyer and the seller.

See also