Forfaiting –  Finance without Recourse


– “Finance without recourse”

Do you have the following concerns when you export to overseas markets?

  • Delayed payments
  • Unknown/Uncertainty of the country risks
  • Lengthy process of export-tax refund
  • Foreign Exchange (FX), political, business risks


Lorem ipsum dolor amet consectetur dipiscing elito aouctor mauris aliquet sodale.

Learn more about our various services

Forfaiting Benefits

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.

  • As Off-balance sheet transactions, forfaiting does not utilize export credit limit
  • 100% non-recourse. Eliminated interest rate risk, FX risk, political risk, bank credit risk, business risk and country risk. Assist exporters to expand business to emerging markets.
  • Incorporated finance costs into sales prices in advance for easy cost control and increase market proportion.
  • Improve business opportunities in mid-high risk regions by offering longer payment terms to the importers.
  • Improved cashed flows reflect on balance sheet, decreased bank loans and account receivables. Improved debt/asset ratio and strengthened liquidity.
  • Accelerated export tax refund process, saved financial costs.

Forfaiting Arrangement

Both importers and exporters determined to us LC to settle the transaction, then contact OTFC to provide below basic information.

  • Issuing Bank
  • Amount
  • Tenor
  • Issuing Date/Date of Shipment

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.

Get Your Free Consultation Now!

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text.

Start typing and press Enter to search