How does the seller benefit from the factoring service?

(1)Enhancing Competitiveness: The seller is able to provide its existing or new customers with more competitive payment term of open account, thus expanding sales market and increasing business opportunities; 

(2)Protection against Risks: Under non-recourse factoring, the buyer’s credit risk is passed on to CEXIM and the seller’s credit facility is not occupied; 

(3)Saving Administration Cost: Without workload in asset management and collection of accounts receivable, administration costs can be saved greatly with the reduced demand in both labor and processing time; 

(4)Simple Formalities: Formalities of domestic factoring are comparatively simpler and easier than that of other finance methods; 

(5)Providing Finance Facilities: Because CEXIM provides the seller with finance facilities, the problem of the seller's working capital tied up in accounts receivable is relieved and the seller’s cash flow is accelerated, thus supporting the seller’s business expansion with the buyer financially; 

(6)Optimizing Financial Structure: CEXIM buys out accounts receivable so that the seller is able to improve its financial statements.