When you need risk hedging on Export L/Cs.
1. What is Forfaiting?
Forfaiting is the discounting of International Trade Receivables such as Promissory Notes and Bills of Exchange, without recourse to the exporter. This is a highly effective sales tool, which simultaneously improves your cash flows and eliminates your risks.
2. Conditions of Forfaiting
We can discount Promissory Notes, Bills of Exchange, Receivables and deferred payments under Letters of Credit guaranteed / issued / avalized by a wide rage of banks with credit periods ranging from 90 days up to 5 years.
3. Advantages of Forfaiting
- You can receive payment in cash at the time of sale of the receivables, thus achieving a cash sale upon shipping the goods while at the same time avoiding carrying out collections under emerging market laws.
- Political, transfer and currency risks are eliminated.
- The possibility of bad debts caused by importers or guarantor banks being unwilling or unable to pay is completely eliminated.
- 100% of the contract can be financed.
- The outstanding balance of the receivables can be off-balance sheet. (Please consult to your C.P.A. for their final decision.)
- We can quote a fixed rate when the commitment is taken, even if there is a shipment period.