When is Forfaiting used?
When you want to eliminate the risk of the issuing bank running into financial difficulties, exchange controls or political problems in the importerís country, our forfaiting (non-recourse discounting for the bills under usance L/C) financing services can help. By simply providing us with the receipt of conditional acceptance and due date for the payment by the L/C issuing bank, we can provide you with liquidity so your payment is secured.
A fixed interest rate reduces your exposure to interest rate or foreign exchange risks and is another core feature of forfeiting. Except in the case of fraud or court injunction, we will not claim back the payment made to exporters.