What is Forfaiting?

Forfaiting is the discounting of trade receivables on a "without" recourse basis.

As a tool, it is highly effective, enabling an Exporter / Supplier to grant attractive terms to one's buyer without tying up cash flow or assuming risk of late payments or even a default. It also protects the beneficiary from adverse changes in currency rates during the credit period.

Applications and Tenors:

Forfaiting may be used to finance a wide range of goods and services including Commodities, Technology, Consumer and Capital equipment and even Turn Key Projects. Tenors typically range from 6 months up to 7 years subject to the contractual terms of the underlying transaction.