How Can Export Factoring Help My Shoe Business Grow?

Your shoe business is growing exponentially. As an entrepreneur, you decide it is time to expand your business outside of your home country. Before you agree to terms on your first shipment, there are key components you should consider regarding exporting. Not only is understanding how the export process works essential, but you also need to know how international trade finance companies can help facilitate your success as an exporter.

Understanding the Export Process

To avoid possible problems in the allowance of your merchandise to foreign countries, it’s strongly recommended you know the rules and procedures of the country you are exporting to before shipping your merchandise. Also, it would benefit you to familiarize yourself with any entry requirements. These are specific to the commodity you are exporting as well as to other federal agencies you’re dealing with.

For example, most countries have specific definitions of how footwear is classified. When you classify footwear, it’s necessary to identify what type of shoe it is and any particular purpose it might have. Not adhering to these guidelines could have your shipment stopped at the point of entry—meaning you will lose money on the shipment, fees you may incur to get your product back and not to mention an upset buyer who is out a shipment of shoes. 

Once you have a primary understanding of the export process, you will want to price your exports appropriately.

Export Pricing for Success

Pricing your product correctly, giving accurate and complete quotations, selecting the terms of the sale, and choosing the payment method are four crucial elements in creating a profit from your shoe business. Of these elements, pricing may be the most challenging because of various market forces and pricing structures in other countries.

The key elements that determine a successful export pricing strategy include assessing your company’s foreign market objectives, competition, market demand, and product-related costs. Additional factors to examine are transportation, taxes and duties, insurance, sales commissions, and financing.

To assist you in developing an export pricing strategy, consider:

  • The type of market positioning or customer perception you want to convey for your company from its pricing structure.
  • The export price accurately reflects the quality of your products.
  • The price is competitive.
  • The type, if any, of discounts—such as cash, trade, quantity, and allowances such as trade-offs or advertising—your company offers its overseas customers.
  • Different pricing based on various market segments.
  • As your company’s costs increase or decrease, the available pricing options.
  • The demand for your footwear in the foreign market.

Once you have thoroughly examined these considerations, you will be able to determine if exporting is a financially viable option for you.

Ensuring the Success of Your Shoe Business with Tradewind

Once you have gone through the process of setting up your business for exporting, it’s time to find your customers and start shipping. There are a few issues that may arise once you start dealing with buyers. For example, you have a customer who has ordered product but will not pay until the merchandise is received. The problem is you must pay to have the goods shipped before you can receive payment. With your cash tied up in other parts of the business, this presents a significant issue for your growth.

However, Tradewind, a leading international trade finance company, can solve short-term cash flow issues with their export factoring services. Export factoring is a means to keep the business cycle flowing. When you ship goods to a customer who will not pay until shipment is received, Tradewind provides the funds needed so you can ship, and your client can receive, the shoes they ordered.

Tradewind Finance purchases your business’ accounts receivable for an advance of up to 95% of the full invoice value. Then, as your partner, they collect the total amount from your customer once the invoice reaches maturity. Once your buyer pays the total invoice in full, they send you the remaining balance. They also eliminate your trade risk through their non-recourse factoring services, providing you with credit protection to ensure your export business thrives.

Growing Your Business

Tradewind solves your cash flow issues when they arise, and you will have a local expert that can assist you in complying with the regulations of each country in which they operate. Tradewind is a partner that will grow alongside you, ensuring the bills are paid and thereby alleviating your concerns on this so you can concentrate on product development and other aspects of running your business.

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由于全球化,如今公司的目标是通过将业务拓展至充满盈利可能性和机会的全球市场,实现超越界限的增长。毋庸置疑,全球化的抱负伴随着某些挑战。然而,相应的好处毫不费力地超过了这些麻烦。此外,属于不同行业的公司目前正在寻求快速的解决方案,以实现全球增长,并抢先于竞争对手在海外持久发展业务。 在顺畅的国际贸易方面,出口融资等被证明是有力的工具。出口融资,也被称为国际保理融资或应收账款融资,是出口商可用于与国际进口商或买家进行贸易的优秀解决方案。它使出口商能够方便快捷地获取营运资金,而无需等待买家结清发票。 它如何运作? 出口融资非常适合需要资金但银行信贷有限或无信用记录文件证明的中小型企业。在很大程度上,追讨逾期付款成为融资机构的责任。 为吸引进口商,出口商通常起草付款条款,说明买家可以获得更长的付款周期。然而,这也意味着他们必须管理发货与收款之间的资金缺口。为了在此等待期间安排资金以维持业务,出口商可以求助于出口融资。 他们可以将未支付的发票提交给融资机构,融资提供者将给予他们发票总额的一定比例作为即时付款。然后,买方有责任向融资商而非出口商付款。进口商结清发票后,融资提供方将剩余款项支付给出口商,并减去双方在签订合同时商定的服务费。 出口融资的优势 出口融资为全球供应商带来诸多益处。它帮助公司保持稳定的现金流、改善收款,并采取预防措施来处理债务。他们可以充分利用机会,通过向买家提供更长的付款期限来实现更高的销售额,而避免出现资金不足的情况。以下是出口融资的主要优势: 出口商可以快速获得资金,否则这些资金会被占用长达数月之久。 他们可以利用这些资金为公司制定增长战略,并投资于新的工具和技术以加速增长。 资金的发放是基于个别发票而非出口商的信用记录。 发票结算后,融资商会立即支付剩余款项。

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德益世及创始人Ansgar Hütten荣获中国商业保理专业委员会颁发的匠心奖与贡献奖 德益世国际保理宣布在“第十届(2022)中国商业保理行业峰会暨第九届于家堡保理论坛”中荣获“中国商业保理行业发展十周年(2012-2022)匠心奖”。此次颁奖典礼由中国服务贸易协会商业保理专业委员会(CFEC)——唯一的全国性商业保理行业自律组织主办,于2023年2月22日在天津举行,中国及国际保理界的主要企业均参与了此次盛会。 匠心奖旨在表彰2012年以来中国商业保理行业发展过程中,最早在产品设计、业务模式、业务领域、风控手段、科技应用等方面率先实现创新的企业。 德益世执行董事兼创始人Ansgar Hütten因在推动中国商业保理发展方面的杰出努力,包括推动立法,参与行业培训、参与团体标准等,而获得“中国商业保理行业发展十周年(2012-2022)贡献奖”。 荣膺两大奖项,标志着德益世在为全球中小企业提供及时且量身定做的贸易融资解决方案方面的领导力和努力获得了认可,这些国际保理融资解决方案能令进口商和出口商加速现金流周转、降低贸易风险,并发展客户组合。 德益世将继续致力于开发灵活且高质量的解决方案,以满足本地贸易企业在日益复杂的全球贸易环境中的需求。 关于德益世 德益世国际保理成立于2000年。集团总部在德国,在孟加拉、保加利亚、中国大陆、中国香港、匈牙利、印度、巴基斯坦、秘鲁、土耳其、阿联酋和美国等地设有办事处和分支机构,网点遍布全球。德益世将融资、信保和收款融入一套贸易融资产品,为全球出口商和进口商带来精简、灵活和一流的服务。