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Forfaiting
Product Overview
Forfaiting is a “Non-Recourse Discounting” service that involves the exporter surrendering or relinquishing the rights to claim for payment on goods and services delivered to the buyer (the forfaiter), in return for a cash payment. Most forfaiting transactions involve the bank purchasing at a discount, with bills of exchange or promissory notes accepted or guaranteed by a bank.
Product Benefits
- Elimination of political and non-payment risk to the exporter
- No further involvement in the collection of export bill once purchased by the bank(forfeiter) and therefore, reduce administration cost
- Improvement in financial statements by eliminating contingent liabilities and improved cash flow
- Quick response to any enquiry by trade experts
- Simple documentation
Product Features
- Upon receipt of acceptance notice by the issuing bank, the export bill discounting is non-recourse basis.
- All usance bills under DCs issued by acceptable issuing banks are eligible for Forfaiting.
- Initial approval and quote : 24 hours or less.
- Funds paid in discount.
Act now
Please contact the Commercial Customer Service Centre at 1588-7639 or visit a Commercial Banking Centre for more details.
