Forfaiting

What is forfaiting?

Forfaiting can be served as the financing instrument in such occasions, which allows exporter to obtain cash by selling their medium and long-term receivables at a discount on a non-recourse basis with sole responsibility in manufacturing and goods/services delivery.

The credit period and repayment frequency can be tailor-made to reflect the importer's requirements. It can include an initial grace period and can cover a variety of maturity profiles with tenors up to 7 years.

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Benefits of the Finshare Solution

  • Forfaiting provides credit at a fixed rate of interest and it is possible therefore to exchange currency forward as soon as the commercial contract is signed for a definite amount to eliminate currency risk.

  • Multi-sourced goods can be handled on one contract, relieving the importer of restrictions imposed by different government credit insurance agencies.

  • The importer has a choice of any convertible currency regardless of its home currency.

Ready to join the FinShare solution?