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).
RBM a Financial Consultancy Company, promoted by Bhupendra Mehta Chartered Accountant, with an experience over 30 years along with a group of consultants professionally qualified and each one having a specialized knowledge on different lines of finance to provide ....Read More
“Forfaiting” is the term generally used to denote the purchase of obligations falling due at a fixed future date, arising from deliveries of goods and services-mostly export transactions-without recourse to any previous holder of the obligation. The word comes from the French “a forfait” ....Read More
103/A, Shruti, Plot No. 198,
RDP – 6, Poisur Charkop Road,
Near Vasant Complex, Kandivli (W),
Mumbai – 400067 India.