Forfaiting
To The Exporters
- 100% financing without recourse to the seller of the obligation.
- Transactions are concluded on a fixed or floating interest rate basis.
- Forfaiting passes the payment risk and political / country risk of the foreign buyers country from the seller to the Forfaitor.
- Protection from the risk of interest rate increase and exchange rate fluctuations.
- Forfaiting converts a credit-based transaction into a cash transaction.
- Increase the ability to offer credit terms, without affecting cash flow and without taking risk of the buyer.
- The exporter’s balance sheet is improved, as it does not need to carry accounts receivable, bank loans or contingent liabilities.
- Documentation is usually concise and straightforward.
- Forfaiting relieves the exporter from administration and collection problems.
To the Banks
- To work with the specialist in the field and who is not a competitor.
- To assist the customer with many more country risks without increasing the risk for the bank.
- To increase the market share and developer greater Customer loyalty.
- To fine tune existing portfolio by selling to a Forfaitor and increase room for the new transactions.
- Enables Bank to handle more of customers business which the Bank may have had to refuse in the past for reasons of country risk or longer maturities.
- Stop the customers from looking to other banks for help (business leakage).