of Payment :
and tailor made structure of payment can be made quarterly, semi-annually,
annually or on a bullet basis.
Financing can be usually made on a fixed interest
rate, but floating rate option is also available.
Forfaiting provides cash payment at the time of shipment and on
a non-recourse basis.
Risk of :
Defferred payments from the importer.
Non-repayment from the creditors.
Fluctuation in rate of interest and foreign currency.
No partial risk retention by the exporter with
100 percent financing solution provision.
Exporting products to the countries
known to be of high credit risk.
Improving the sales of product, by attracting importers with the
facility of discountable trade finance instrument.
Working Capital :
Improving cash flow by offloading the burden of
cash receivables from the balance sheet.
Converting credit-based to cash –based transaction.
Faster transaction speed with tailor made
Simplied documentation, usually concise and straight-forward.
No restriction on the country of export