Do you want to purchase equipment? Does your supplier (exporter) insist that the payment be made “on demand”, but does your company intend to pay in full or in part “in the long term”?
Know that Forfaiting can be a solution for both parties.
Benefits
For the exporter
Converts a term credit based on a commercial transaction in a spot / immediate loan;
It frees the exporter of administrative tasks and problems in collecting the amounts from the importer;
Provides liquidity management and mitigation of risk associated with the political and economic situation of the importer’s country (political and transfer risks), because the possibility of appeal against the exporter is forbidden;
It provides protection against the risk of rising interest rates and exchange rate fluctuations;
Generally, it is during the stage of contractual negotiation or production (pre-shipment) of the merchandise that we advise you to contact us with a view to negotiating this type of operation.
For the importer
The use of Forfaiting by the exporter allows the importer to benefit from a financial package at the time of purchase of its products (100% imported product financing, absence of interest rate risk, etc.);
It manages the cash requirements (time payment rather than cash payment) and financing costs (usually very high, when associated directly with imports).