Finance One’s Shanghai Office Assists Local Importers, Provides Networking Services
Finance One opened its first international branch last fall in Shanghai after a five-year process to secure new business partners in China and ensure that the Los Angeles–based factor has done its due diligence regarding international laws and regulations for overseas trade and financing.
The new office was founded to help facilitate business between the U.S. and China. For U.S. companies, this means Finance One can issue guarantees on behalf of U.S. buyers (rather than requiring a steep down payment).
“In essence, the importers save money in the form of nonpayment of interest charges and improve cash flow from delayed payments,” said Kee H. Kim, Finance One president and chief executive officer.
The guarantees will also provide Chinese manufacturers with an incentive for providing extended payment terms. That means U.S. companies will have extra time to inspect the goods after receiving them before payments need to be made, Kim said.
“If there are commercial disputes—such as inconsistent quality, incorrect quantity or late delivery—the importers can dispute the invoices and withhold payments until a resolution is reached,” he said.
If necessary, Finance One can also arrange a lender for the exporter in China to receive funding against invoices that Finance One has guaranteed, Kim said.
The Shanghai office of Finance One also offers services such as collections as well as access to its networking platform, which connects U.S. importers with Chinese exporters.
For more information, visit www.finone.com.