Benefits of forfaiting to the Exporter

  • The Exporter is paid cash, thus ensuring an enhanced cash-flow and a stronger balance sheet.

  • Up to 100% of the contract value may be financed without recourse. There are no minimum down payment requirements and there is no risk retention by the Exporter.

  • The Exporter is protected from late payments and defaults resulting from political, credit, and transfer events.

  • The Exporter is also protected from adverse movements in interest and foreign exchange rates.

  • The Exporter eliminates the administration required to collect the amounts due.

  • The Exporter may be able to obtain pre-shipment financing from its banks, against a commitment from London Forfaiting to discount the receivable without recourse.

  • The Exporter may have a significant commercial advantage over competitors who do not use forfaiting and who, therefore, may not be in a position to offer medium or long term supplier credit financing.

  • There are virtually no restrictions on the type of product, commodity or service which can be financed and there are no limitations on foreign content.

  • The Exporter can use forfaiting in conjunction with numerous Government export credit programmes, and may be able to access local export subsidies where available.

  • The Exporter keeps direct contact with the Importer, and guides all the financial and commercial discussions through to the signing of the contract.

  • London Forfaiting can fix interest rates up to 18 months in advance of a shipment date, protecting the Exporter from increases in interest rates, during the manufacturing and delivery period.

  • Repayment terms can be structured to meet the Buyer's cash-flow needs, including grace periods.

  • Most major currencies are acceptable.

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London Forfaiting Company Ltd 11 Ironmonger Lane, London EC2V 8EY, United Kingdom, E-mail:
London Forfaiting Company Ltd is a company registered in England and Wales with company number 01733470.
VAT Registration Number GB 877 5904 67
LEI Number 213800GULXX1JBOHV435