Based on Wordreference.com British to Spanish dictionary, the Spanish word “bueno” has about seven meanings: good, kind, well, nice, considerable as with a great deal of money, gorgeous and real. As used in the following paragraphs bueno can be used to point out that if you’re within the import or export business, Mexico is a great country to think about with special possibilities for U.S. traders and financing available by means of a / r financing. Your company could make a great deal of profit Mexico.
Mexico includes a population well over 103 million people. In The month of january, 2007 U.S. exports to Mexico were over $10.7 billion dollars and imports from Mexico towards the U.S. were over $15.3 billion dollars. Products traded incorporated food, beverages, tobacco, lubricants, product which and machinery. Many U.S. companies have production and set up operation in Mexico to satisfy the difficulties of worldwide competition with Mexico’s lower labor, utility and expenses. When compared with China, Mexico presents less geographic logistical issues with our common border and relative closeness. Mexico has an experienced and difficult working labor pressure. The Mexican legislation, however, is not the same as U.S. law where there exists a Uniform Commercial Code that has been adopted by all the U.S. States to manage commercial finance transactions. Enforcing contracts in Mexico could be problematic. Litigation can continue for a long time and judgments take time and effort to enforce.
Mexico includes a highly evolved and arranged legislation. It had been initially according to Greek, Roman and French legal systems today it more resembles a Latin American country’s legislation compared to U.S. legislation. Mexico has vast layers of administrative law along with a limited body of situation law, or “jurisprudencia definida”. Mexican law now recognizes a number of security devices which enables commercial finance lenders to provide a / r financing with reasonable certainty. To sign up in Mexico’s marketplace, it is advisable to possess a Mexican a lawyer as part of your team.
One unique Mexican program may be the Maquiladora concept and it is fortunate status. Maquila operations involve the importation of foreign merchandise into Mexico on the temporary basis, where it’s put together, manufactured or repaired after which exported to the U.S. or abroad. The benefits of maquila operations are savings in operational costs, waiver of import responsibilities, possibilities to market goods in Mexico along with other legal and tax advantages which are past the scope want to know ,. Mexico’s maquila market is a multi-big industry within the U.S. – Mexican border. These laws and regulations are business friendly and lots of medium and small sized firms have elevated their income by manufacturing in U.S.-Mexico border metropolitan areas.
To illustrate an excellent furniture and wrought iron fabricator located in California which was getting financial hardships due to high labor costs and growing workers comp premiums. These costs were decline in half by moving production to some maquiladora. Their exponential growth from 30 to 100 employees greater than tripled their production and profits. Their sales contracts specified internet 60-day credit terms but actual payments collections were nearer to 3 months. A / r financing facilitated the business’s rapid growth by supplying liquidity from purchasing the receivables with a commercial loan provider in a discounted rate. Without it income, the organization couldn’t have cheated their sales possibilities or created their goods quick enough.
The Mexico factoring financing process is comparable to a / r financing within the U.S. A loan provider advances about 80% from the face worth of the receivable to business proprietor. This funds are used to cover materials, labor and overhead. Once the invoice is compensated towards the commercial loan provider, their charges are deducted and also the balance is came back towards the business. Generally, a 25% profit around the items are essential for the financial lending to create sense.
The conclusion: for U.S. importers and exporters Mexico offers many possibilities for effective business operations. A / r financing and maquiladoras may boost their profits. Bueno! Business in Mexico is nice.
