Import/Export

To exporters, any sale is a gift until payment is received. To importers, any payment is a donation until the goods are received. Therefore, the importer wants to receive the goods as soon as possible, but to delay the payment as long as possible, preferably until after the goods are resold to generate enough income to make payment to the exporter. Due to the intense competition for export markets, foreign buyers often press exporters for open account terms since the extension of credit by the seller to the buyer is more common abroad. Wire transfers and credit cards are the most commonly used cash-in-advance options available to the exporters. Cash in advance, especially a wire transfer, is the most secure and favorable method of international trading for exporters and consequently the least secure and attractive option for importers. Letters of Credit (LCs)  are among the most secure instruments available to international traders.
To extend open account terms in the global market, the exporter who lacks sufficient liquidity needs to export working capital financing that covers the entire cash cycle from purchase of raw materials through the ultimate collection of the sales proceeds. Export working capital facilities can be provided to support export sales in the form of a loan or revolving line of credit.
Export Working Capital Financial extended by commercial banks can provide a means for exporters who luck sufficient internal liquidity to process and acquire goods and services to fulfill export orders and extend open account terms to their foreign buyers. EWC funds are commonly used to finance three different areas (1) materials (2) labor (3) inventory. But they can also be used to finance receivables generated from export sales and/or standby letters of credit used as performance bonds or payment guarantees to foreign buyers. An unexpected large export order or many incremental export orders can often place challenging demands on working capital. 
Export factoring is a complete financial package that combines export working capital financing, credit protection, foreign accounts receivable, bookkeeping and collection services.