In today’s global marketplace, the demand for goods and services is at an all-time high, but the financial complexities of international trade continue to challenge sustainable growth. For exporters entering or expanding into the U.S. market, it’s vital to choose a financing partner that can provide resources for stability, insight and growth.
The Global Exporter’s Challenge
Despite unprecedented demand for goods and services, exporters face a persistent challenge: insufficient access to working capital. The financing gap in global trade is estimated in the trillions, with exporters bearing the brunt of delayed payments, extended buyer terms and increased pressure from shifting geopolitical and market forces. Exporters need reliable and scalable working capital if they want to keep pace with the global marketplace.
Strategic Export Financing Solutions
1. Gain The U.S. Advantage
Receivables financing has always hinged on a central factor: the strength of buyers. A U.S.-based financing company has access to local buyer information and market data, which means anticipating trends, providing sharper insights and creating agile solutions.
Companies that want to grow their buyer portfolio into the U.S. should work with a partner that understands the importance of market intel. Plus, leaning on a company that can not only tailor solutions for your specific needs but also provide the backing of the U.S. financial system will serve you well in the long-term.
2. Choose the Right Growth Partner
Factoring has traditionally been viewed as a way to unlock liquidity and boost cash flow, but a strong financing partner will offer more than funds.
It’s important to work with a company like RTS International that takes the time to understand your specific needs and acts with agility, transparency and creativity to build solutions around them. By leveraging your financial partner’s resources and intelligence, you can strengthen your buyer portfolio to ensure you are working with creditworthy customers and using that knowledge to negotiate stronger terms and expand volume.
3. Stay Resilient
Exporters can stay resilient by working with a U.S.-based financing company that understands the dynamic nature of the marketplace and creates solutions tailored to your specific needs. A strong finance partner like RTS International has an experienced operations team that understands unique cultural needs and a sales team that is boots-on-the-ground, getting to know companies, industries and markets all over the world.
4. Access to Flexible Funding Options
With uncertainty from geopolitical and market forces, buyers are seeking to extend payment terms and shift the pressure onto suppliers. This creates a critical need for flexible financing options that adapt to the evolving trends of global trade.
- Cash-Against Documents: To unlock liquidity on in-transit goods, exporters can turn to cash-against-documents funding. This allows exporters to receive payment as soon as trade documents are presented, not having to wait until arrival on lengthy transit times to receive payment.
- Recourse Funding: With lower fees and higher advance rates, businesses can choose recourse funding, meaning they are responsible for the debt if the buyer doesn’t pay. Recourse funding increases cash flow without incurring debt, creating more opportunities for growth.
- Non-Recourse Funding: With higher fees but less credit risk, a business may choose non-recourse funding so that their factoring company assumes the risk of customer non-payment. This allows a business to get completely debt-free funding, with guaranteed cash flow and outsourced collections.
5. Unlimited Funding Model
Banks and other credit facilities often restrict the amount an exporter can finance, making it more challenging to scale their business. To keep up with global trade and pursue larger contracts in new markets, exporters need access to unlimited working capital.
The unlimited funding model that export financing companies like RTS International can provide grows in direct proportion to sales volume. As exporters secure more contracts with creditworthy buyers, their funding automatically scales, ensuring working capital to capitalize on every opportunity.
Strategizing for the Future of Trade Finance
Looking ahead, liquidity will continue to play a central role in exporters’ ability to compete. As buyers continue to extend terms, exporters will require financing partners that can not only provide immediate access to capital but also anticipate and offset risks across their supply chain. RTS International offers a competitive edge in meeting these needs by providing consistent, non-restrictive access to funds that grow with you.
Aligning with a financing partner that combines market fluency, cultural awareness and tailored solutions will be what makes the difference in your success. At RTS International, we understand that no two exporters are alike. A one-size-fits-all model simply cannot address the nuances of international trade. Instead, we design tailored strategies that work for your goals, markets and challenges.
Jonathan Emkes has dedicated his career to international business growth, with a focus on providing solutions to customers across multiple industries. He currently serves as the Vice President of International Sales for RTS International, where he funds $4B annually to a global portfolio of customers.