International factoringExport factoring

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Until recently Letter of credit (L/C) has been mostly accepted instrument to control international trade risk. Now more international trade settled by remittance without L/C , simply because of the demand for more simple and fast trade/settlement or the needs for less administration and financial burden on importer side.


International factoring is a simple alternative solution for exporter to collect money and secure account receivables, provided by the professional factors cooperating under the uniform service level agreement of FCI.*

  • Secure export account receivables without L/C with 100% coverage.
  • Strengthen buyer risk control.
  • Simplify export administration and save time.

About export factoring

Mizuho factor provides credit protection against the importer’s inability to pay on open account terms,
underwrites the collection of invoices and 100% protection for non-payment by each invoice.
This service is to be originated in corporation with our correspondent import factor for each importer.

Benefits of export factoring

  • Secure collection of export proceeds on open account terms
    Each invoice is managed by export and import factor until full payment.
    Providing 100% protection for over-due invoice, 90 days or more from the due date.
  • Creates business opportunity by using factoring
    Importer can purchases on convenient open account terms.
  • Simplify export-related various administration
    Exporter can be released from the burden of administrative work from L/C or cash advance.

Scheme of export Factoring

Scheme of export Factoring
  1. Credit Application
    Sending credit application for each importer to Mizuho Factor.
  2. Credit cover request
    Requesting credit assessment to import factor.
  3. Credit covers
    Approximately within 2 weeks result will be responded.
  4. Credit approval
    Notice of Credit Cover Limit to be issued with any applicable conditions.
  5. Shipment
    Shipment can be made based on agreed terms and conditions.
  6. Invoice copy etc.
    A copy of invoices and shipping documents must be sent to Mizuho Factor.
  7. Invoice details
    Mizuho factor sends the details of invoice to import factor.
  8. Collection
    Importer pays the proceeds to import factor on due date.
  9. Collection proceeds・Remittance・Payment
    Mizuho Factor will pay to exporter upon receipt of the funds from import factor.

Active cases

Industries Incentives for exporter
Taiwan Mfg of electric parts Secure new importer risk
China Mfg of chemicals Shift from cash advance
USA Mfg of maschines Invoice discount to ease cashflow
  Mfg of Beverage & Beers Prompt collection and secure receivables

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Receivables from the proceeds of goods sales and services-rendered are acceptable.

Payment terms up to 120 days is normally accepted (maximum 180 days, exceptionally)
Trade contract including “acceptance inspection” clause may not be acceptable.

List of country for export factoring

United States, Canada, Chili, Brazil, Mexico
UK, Germany, France, Italy, Spain, Portugal, Nederland, Belgium, Luxembourg, Finland, Norway, Sweden, Denmark, Ireland, Switzerland, Austria, Poland, Czech, Slovakia, Hungary, Romania
Korea, Taiwan, China, Hong Kong, Singapore, Thailand, India, Vietnam, Indonesia, Philippines, Malaysia
Australia, New Zealand
Middle East and Africa
Turkey, South Africa, UAE, Israel

The countries on this list are subject to change due to any possible events in financial environment. Please contact us for the details.

Flow chart to start up

Flow chart to start up
  1. Export factoring Agreement
    Export factoring Agreement has to be signed. (Corporate Register and seal registration certificate required)
  2. Request for credit Line
    Sending credit application to us on each importer account respectively.
  3. Notice of Credit Cover Limit
    Notice of Credit Cover Limit to be issued with any applicable conditions.
  4. Introductory Letter
    Introductory letter needs to be sent to the importer from the exporter to notify the use of factoring.
  5. Finalizing factoring arrangement
    Factoring arrangement finalized and ready to use.
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