– “Finance without recourse”
Do you have the following concerns when you export to overseas markets?
Forfaiting, a trade finance product by which buyers (usually purchasing banks) purchases usance Letters of Credit (LCs) before its maturity without recourse. The buyer discounts the account receivables and takes full risk in possible default on the receivables.
Both importers and exporters determined to us LC to settle the transaction, then contact OTFC to provide below basic information.
OTFC provides estimated financing cost/pricing in detail before a formal agreement being signed between the selling side and recommended potential buyer. We start process upon documents stipulated under the L/C being accepted by the issuing bank. The discounted proceeds (after deduction of interest and other relevant banking charges) are usually remitted to the seller’s designated account in three days after we receive complied documentation required under the agreement.