The success of an export factoring contract largely depends on the EF working with the right IF.
How to select Import Factor Correspondents
The IF’s performance affects his company’s relationship with the buyers. It also affects the EF’s reputation with the seller.
sue and you should study it carefully.
A satisfied export seller will speak well of the EF and boost his company’s image in the market-place. This in turn will create a good image for export factoring in general. Conversely, an IF who performs badly could cause the EF to lose a valuable seller and his future business.
Chapter 3 of the Communication Manual is largely devoted to this important issue!
Visit your import factors correspondents
You should note particularly that visiting an IF is considered to be best practice. It is just as valid for selecting an IF as it is for selecting a new seller
FCI Factors of the Years Award
Each year FCI conducts a survey among its members to select the best EF, the best IF and the best combined EF & IF of the year. The winners of the FCI awards receive a valuable prize. FCI asks all members to rate the quality of service that all their correspondents provide. For example, the criteria used to rate the IF are:
Business acceptance
Ability to provide prompt and sufficient credit limits.
Knowledge of market, industry and buyers.
Pricing.
Service provided:
Credit limits maintained/renewed.
Effective collection procedures.
Prompt cash transfer.
Prompt payments under approval .
Communications:
General communication.
Accurate and complete transaction details.
Problem-solving.
Proper use of edifactoring.com.
FCI announces the results of these awards at the Annual Meeting and distributes the complete ratings for all FCI members by circular. The circular provides a useful source of information to help you to choose an IF in each country.
You can also find all past award results on MY FCI in the file library section “Service Quality”.
For further guidance on this subject, see Chapter 3 of the Communication Manual.