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Manama - Kingdom of Bahrain

Phone : +973 17295154

Fax : +973 17295156

Email : info@bfcbfc.com



Applications and Tenors

 

What is Discountable

Export credit agencies and forfaiting






Benefits

 

Documentation

 




Frequently Asked Questions

 




WHAT IS FORFAITING?
Forfaiting is a proven method of providing fixed-rate trade finance for export transactions. In recent years, it has assumed an important role for exporters who desire cash instead of deferred payments, especially from countries where protection against credit, economic and political risks has become more difficult.



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Benefits of Forfaiting
Forfaiting is an interesting product for many companies. They can reap major benefits from the disposal of account receivables. Forfaiting is also particularly interesting with regard to the currently held 'Basle II' discussions. There are many benefits for every company of distinction in forfaiting.

What can be your benefits?

1. Risks are eliminated: you have to worry no more about payment and/or political risks
2. The strain on your balance sheet is relieved
3. Your liquidity is improved
4. The strain on credit lines at banks is relieved
5. You avoid interest and exchange rate risks

Account receivables are purchased at an agreed discount interest rate. These then are discounted and the net amount is placed at the disposal of the vendor immediately. You could be that vendor.

Forfaiting is an interesting proposition for the manufacturers of capital goods, traders, small-and medium-sized businesses and large-scale industry. The account receivable, which is to be forfaited ideally, entails a volume of at least Euro 250,000 and a (residual) term of at least ninety days.

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