Benefits Of Forfaiting

Eliminates Risk

• Removes country (i.e. political and transfer) and commercial risk
• Provides financing for 100% of contract value
• Protects against risks of interest rate increase and exchange rate fluctuation

Enhances Competitive Advantage

• Enables sellers of goods to offer credit to their customers, making their products more attractive by offering credit terms and at the same time cash the sales
• Helps sellers to do business in countries where the risk of non-payment would otherwise be too high against the risk premium to be added with the discounting interest

Improves Cash Flow

• Forfaiting enables sellers to receive cash payment while offering credit terms to their customers
• Removes accounts receivable, bank loans or contingent liabilities from the balance sheet of the seller

Increases Speed and Simplicity of Transactions

• Fast, tailor-made financing solutions
• Financing commitments can be issued quickly
• Documentation is typically concise and straightforward
• No restrictions on origin of export
• Relieves seller of administration and collection burden

View a typical transaction