Post Box No 3233

Manama - Kingdom of Bahrain

Phone : +973 17295154

Fax : +973 17295156

Email :


Applications and Tenors


What is Discountable


Export credit agencies and forfaiting







Frequently Asked Questions


Document used in these transactions are always on irrevocable,unconditional, divisible and assignable basis.

Following documents are generally required.

• Copy of supply contract, or of its payment terms
• Copy of shipping documents including certificates of receipt, railway bill, airway bill, bill of lading or equivalent documents
• Copy of signed commercial invoice
• Letter of assignment and notification to the guarantor
• Letter of guarantee, or aval ( a form of guarantee from internationally recognized and credit worthy bank)
• A blank endorsement by a guarantor can be a substitute for aval .
• SBLC(Standby letter of credit ) can also be used.

What is KYC?

‘Know Your Client’ or KYC is a set of credential of present owners/partners of the beneficiary of Trade Finance Instrument. These essential documents are needed by the bank specially to know exporters thoroughly.

KYC contains generally following documents :

• Copy of Resgistration (CR)
• The MOU of association
• Copy of Articles of association
• Latest audited financial reports from Chartered Accountant.
• Passport copies of each aurthorised signatory.
• Original copy of latest Water / Electricity Bills of the company
• Original electricity bill of each authorized signatory
• Details of the company’s bank account.

What is aval/ avalisation ?

Generally the importer’s credit facility is supported by a valid trade finance instrument such as BOE, BG etc. The value is added to the paper by the bank’s guarantee, by the way of ' per aval ' endorsement. The process is called as avalisation and equally the receivables may take the form of a term draft drawn under a documentary letter of credit.
The aval is the Forfaiters' preferred form of security of payment of a bill or note. The aval may be placed on the face of the note.Somecountries, where aval is not legally binding, guarantee is issued.Usually it is provided in a separate letter.

Home / Terms of use / Country Coverage / Privacy Policy
All contents © copyright 2007-2008 Bahrain Forfaiting Corporation