Forfaiting

Import & Export With Confidence

Forfaiting is the process by which trade receivables can be discounted on a without recourse basis, typically the receivables will be in the form of a Letter of Credit, Bill of Exchange, Promissory Note, or Payment Guarantee with a tenure of say a few months up to 7 years.

Funding Trade

Forfaiting allows an exporter to consider granting credit terms where otherwise it would have unduly tied up cash-flow necessary for the day to day operational needs of the business. The advantages of forfaiting are numerous and include:

  • Cash flow unaffected by making forfaiting  related export sales
  • Eliminated risk of late payment or default by the buyer
  • Total protection against adverse currency movement
  • Eliminate Economic and Political Risk factors

Our risk appetite

Our country menu indicating the tenor applicable to most countries is available via PDF download and is updated at quarterly intervals and can prove a very useful tool when assessing the costs of an export transaction.

To download our most up-to-date Country Menu click here.

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