Benefits of Forfaiting
Eliminates Risk
- Removes political, 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
- Helps sellers to do business in countries where the risk of non-payment would otherwise be too high
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
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