- It is risk-free, aggressive, flexible, cost effective and world
- It makes exporters more competitive.
- Bahrain Forfaiting Corporation (BFC) arranges forfaiting and
other trade finance services primarily through Islamic Financial
Institutions to Companies in the Middle East & North Africa
(MENA) Region for these countries.
- BFC enables you to focus on your primary business rather than
trying to stay current on the sources and availability of trade
finance for a particular transaction.
- We pride ourselves on providing quick responses and personal
attention to the essential details of each transaction.
The transaction structure
1) Financing Bank (FB) signs
a Mudarabah Agreement and/or Sharia Complied Debt against Commodity
Master Agreement with Bahrain Forfaiting Corporation (BFC).
2) Financing Bank disburses funding
in accordance to the agreed upon the implementation procedure
and rules of acceptance and processing of each transaction.
3) BFC, acting as the mudarib
for the FB, uses the funding to generate Forfaiting business.
4) BFC approaches exporters who
are dealing with clients based throughout the world. These exporters
are selling to their buyers on secured terms, with LC’s,
Promissory Notes, PDC’s etc. BFC provides post-shipment
export financing to these exporters, therefore BFC is a provider
of Post shipment Export Forfaiting.
5) Sourced transactions is normally
bear by the buyer’s Bank, who has issued/ avalised the Trade