– “Finance without recourse”
Do you have the following concerns when you export to overseas markets?
Forfaiting, a trade finance product which buyers (usually purchasing banks) purchases usance Letters of Credit (LCs) before its maturity without recourse. The buyer discounted the account receivables based on the acceptance of the LC issuance bank and takes full non-payment/delayed payment risks of the issuing bank upon maturity.
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 before a formal agreement to be signed between the exporters and the 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) will be remitted to the exporter’s designated account within three banking days at the earliest after we receive complied documentation required under the agreement.