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.
1. Finance feasibility and estimated costs.
2. Negotiate Sales Contract.
3. Commit Forfaiting Contract.
4. Deposit Promissory Notes / Request LC.
5. Forward Notes w.Bank Guarantee / Advise LC.
6. Deliver the goods / services.
7. Release Notes w. Guarantee.
8. Present shipment docs with accepted and assigned debt instrument.
9. Disburse the Discounted proceeds.
10. Claim Payment by forwarding accepted Debt instrument.
a) Debit importer’s account.
b) Execute Payment on Maturity Date.