In today's ever changing business environment existing market and shrinking and competition increasing. In order to survive and prosper we must all look to new, often relatively unknown markets. This comes against the backdrop of events that proves the world is a riskier place and the credit risk is, well riskier. Forfaiting is a tool for exporters and banks to migitate these risks.
Market conditions can change extremely fast, what is a good risk can become a problem risk the next. Exporters may find suddenly that their bankers are either unwilling or unable to help, or only at greatly increased risk premiums. Those with written commitments from their Forfaiting bankers prior to any troubles simply export as usual and are paid by the forfaiter at the pre-agreed rate.