FORFAITING

Forfaiting is a tool of financing trade receivables without recourse, applicable for medium to long-term export transactions, whether recurring, or standalone.

Discounting under Forfaiting can be up to 100% of the present value of the transaction, less expenses. Since all risks associated with the payment of the transaction are transferred to ABC Factors (i.e. the credit risk, interest rate risk, currency risk), the discounting is subject to a thorough assessment of the obligor, as well as to the documentation to evidence the transaction and an acceptable means of payment, such as a letter of credit, promissory notes, bills of exchange etc. that specify the amount and the exact date of payment.

Forfaiting is addressed to export companies and it offers flexibility in the formation of the credit policy of the exporter, without having to abide to the existing financing levels of the company.

ABC Factors, aiming to cooperate with similar organisations in the secondary market as well as to adopt best practices, has become a member of the International Trade and Forfaiting Association (ITFA) 
http://www.itfa.org