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.
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:
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.