We are a knit clothing manufacturer and exporters to US and Europe. We have recently opened a one man office in the US.


I intend to ship all the goods to our US company and then our US company sells goods to our customers. Customers are asking for credit, which we can't offer. I know that we can factor our sales to US offices but don't know much details. Can some one give me some factoring companies which are active and offer good value for us.


Also some companies which have been buying on ** terms would like us to sell them goods on COD. How can this be achieved?


Our invoices are normally in the range of US$20,000 to US$80,000.

With the economy the way it is I would think that you would be best to avoid offering credit wherever possible. You never know which of your customers may not be there next month.

So is there any way you can offer financial incentives for your customers to pay upfront or in the very least COD. If you have a legal office in the US and your customers are in the US then you should have a good deal of protection under consumer laws, but none of that will protect you if one of your customers goes out of business.

Quoting from [Qamar]:


We are a knit clothing manufacturer and exporters to US and Europe. We have recently opened a one man office in the US.



I intend to ship all the goods to our US company and then our US company sells goods to  our customers. Customers are asking for credit, which we can't offer. I know that we can factor our sales to US offices but don't know much details. Can some one give me some factoring companies which are active and offer good value for us.



Also some companies which have been buying on * terms would like us to sell them goods on COD. How can this be achieved?



Our invoices are normally in the range of US$20,000 to US$80,000.

Since as you say you have a U.S. Company and office established here offering credit terms is easy provided that you require your customers to obtain Standby Letters of Credit.

These types of Letters of Credit are payment guarantees should any of your customers fail to make payments on time.  They are much easier for the customer to get and the fee's associated with them are much cheaper than a regular "At Sight" of "Ussance" Letter of credit. 

A Standby Letter of Credit can be called on whenever the customer fails to make a scheduled payment per your contract with them.  Since the SBLC is issued by a bank it is also a guarantee that you will be paid.

If you need a factoring company I suggest you check this company out:

http://www.js.com/

As for COD this is easy to accomplish via most trucking and delivery services for a fee Provided the COD payment is no-less than a Pre-Certified Check. 

A Pre-Certified Check is a check issued by the buyers bank in which those funds have been st aside to pay the debt.  To Pre Certify the check it is required that the buyer give you the Certified Check document number and the number of the branch bank from where it was issued.  In this way you can confirm that the check is actually real.

Hope this helps you.

Ranger