FORFAITING
What is Forfaiting
“Forfait” to surrender (french forfaire)
Purchase without recourse of future payment obligations (accounts receivables) represented by financial instruments (normally through negotiable and transferable instruments) at a discount price of face value or the nominal value in exchange for a settled financial return.
How Forfaiting works
Benefits to Exporters
Improved working capital ratios and treasury optimization
Enhanced commercial relationship (longer repayment terms for buyer)
Repayment terms can be structured and flexible
No credit lines use
Simple documentation process
Fixed interest rate
Risk mitigation (outstanding balances, foreign exchanged, variable rates)
Eliminates collection process
Confidential clauses
Benefits to Importers
Allows them to pay for the product from the revenue it generates
Forfaiter does not take lien’s on the product
Can access medium to long term international financing which may be prohibitively expensive or completely unavailable locally
Simple documentation
Pay interest on a fixed rate basis for the life of the credit which will make budgeting simpler and safer
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COMPLETED PROJECTS
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Business BUNDLES
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POTENCIAL INVESTORS
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