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).