What is Forfaiting?
Forfaiting is 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 the Exporter cash flows and eliminates your payment risks.
What are the Conditions of Forfaiting?
ForfaitingServices.com Lenders/Banks can commit to discount the Promissory Notes, Bills of Exchange, Receivables and deferred payments under Letters of Credit without confirmation, guaranteed / issued / avalised by a wide range of Banks with credit periods ranging from 90 days up to 5 years.
What are the 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.
- ForfaitingServices.com can arrange for the quote with a fixed rate when the commitment is taken, even if there is a shipment period.
