Sophisticated Solutions

HSBC can arrange forfaiting that involves the exporter surrendering or relinquishing the rights to claim for payment on goods and services delivered to the buyer (the forfaiter), in return for a cash payment.

Most forfaiting transactions involve the forfaiter purchasing at a discount, with bills of exchange or promissory notes accepted or guaranteed by a bank.

By this mechanism, the forfaiter provides non-recourse finance to the exporter. Once the bills or notes have been sold, the exporter has no further involvement in the collection of the debt.

A forfaiting transaction can be done for any deal involving a minimum of US$500,000 with a credit period of six months and above.

Benefits

• Provide non-recourse finance to the exporter.
• Eliminates all political, credit and commercials risks.
• No interest rate risk as it can provide long-term fixed interest rate financing.
• HSBC's forfaiting responds quickly to any enquiry received.
• Simple documentation