We help exporters be competitive by enabling them to address their customers needs and payment terms requirements.
We give them powerful and safe means to offer their cross border clients open account terms.
To boost their export sales.
Open Account Terms:
a powerful export-selling tool
To be competitive in the export market you need to offer your customers open account terms [OAT].
- Address your customers needs
- Relieve your customers from the bureaucratic process of letters of credit
- Provide your cross-border customers with cash strain relief when doing business with you
- Establish a competitive edge even outside your home base
- Increase sales with existing customers
- Open new markets & win new customers you could not get with LC payment terms.
But OAT means more risks, more cash requirements, and more credit management expertise.
KNOW MORE ABOUT OPEN ACCOUNT TERMS +
1- The need for open account terms
In our rapidly globalizing world, exporting has assumed new levels of competitiveness.
Exporters have to offer more liberal terms in order to remain competitive, especially in key developed markets. Open account trading terms are now preferred by importers in those markets, and exporters must comply or risk losing lucrative markets.
- The market has become customer-driven and customers now insist on payment terms that suit them.
- Open account terms offer major importers the flexibility and cost- saving necessary for maintaining profitability as it enables them to dispense with costly letter of credit charges and a bureaucratic process.
2- Why do importers / customers request open account terms?
There are so many advantages to the customers to request Open Account Terms!
- Customers can buy goods without incurring the delays, complications and cost of opening Letters of Credit.
- Customers can take advantage of the exporter’s credit terms, and reduce the need for finance.
- Since the need for finance is reduced, the cost of financing is also reduced.
- Customers increase purchasing power within existing bank credit lines.
- Customers can use immediately purchased items without waiting for payment.
3- The requirements to offer open account terms
To be able to offer safely open account terms to customers, exporters need to manage the credit efficiently in an international environment.
This means being able
- To obtain accurate and timely information on importers.
- To assess realistic credit lines on importers.
- To minimize losses from bad debts.
- To manage the credit efficiently in an international environment.
- To control the credit granted to importers by effective collections.
- To maintain an up to date and efficient sales ledger administration system including dunning procedures.
- To make available sufficient finance to cover the increase in working capital requirement generated by the growth in business and by the credit terms extended to importers.
the powerful and safe means to offer open account terms
without the hassles of open account terms
Rather than selling directly your goods to your overseas clients with extended payment terms you sell your goods to Chain Finance on cash basis.
Chain Finance in turn resells your goods to your overseas clients with the payment terms your clients expect.
When paying you cash your sales invoices and extending payment terms to your cross-border / overseas clients, we provide a comprehensive suite of essential export credit services to address the all array of credit requirements when selling on open account basis:
- We turn your sales into immediate cash
- We relieve you from unpaid invoices and bad debts to secure your most valuable asset: your receivables
- We take care of the collection of invoices and of export sales ledger administration
KNOW MORE ABOUT EXPORT CHAIN SERVICES +
1-We turn your sales into immediate cash
A company’s key to growth is the availability of cash. It provides an advantage over the competition and the ability to seize opportunities as they emerge.
Chain Finance turns your export sales into immediate cash by paying you your export sales cash. It therefore releases valuable cash rather than keeping it tied up in your sales ledger.
Chain Finance provides the easiest and safest way to regulate your cash flow and plan your growth strategies.
- Secure financing that grows with your sales
- Optimize your working capital
- Seize opportunities as they emerge
2- We relieve you from unpaid invoices and bad debts risks & secure your most valuable asset: your receivables
Bad debts hurt your business, reduce your profit margin and stunt your growth. In some situations, bad debts could put you out of business.
When paying you your export sales cash Chain Finance relieves you from the unpleasant effects of unpaid invoices and bad debts to secure your most valuable asset: your receivables.
- Rid yourself of bad debts
- Better plan your cash flow
- Secure your profits and your company’s assets
3- We take care of the collection of invoices and of export sales ledger administration