Rupee Business Management

To The Exporters:

•	100% financing without recourse to the seller of the obligation.

•	Transactions are concluded on a fixed or floating interest rate basis.

•	Forfaiting passes the payment risk and political / country risk of the foreign buyers country from the seller to the Forfaitor.

•	Protection from the risk of interest rate increase and exchange rate fluctuations.

•	Forfaiting converts a credit-based transaction into a cash transaction.

•	Increase the ability to offer credit terms, without affecting cash flow and without taking risk of the buyer.

•	The exporter’s balance sheet is improved, as it does not need to carry accounts receivable, bank loans or contingent liabilities.

•	Documentation is usually concise and straightforward.

•	Forfaiting relieves the exporter from administration and collection problems.

To The Banks:

•	To work with the specialist in the field and who is not a competitor.

•	To assist the customer with many more country risks without increasing the risk for the bank.

•	To increase the market share and developer greater Customer loyalty.

•	To fine tune existing portfolio by selling to a Forfaitor and increase room for the new transactions.

•	Enables Bank to handle more of customers business which the Bank may have had to refuse in the past for reasons of country risk or longer maturities.

•	Stop the customers from looking to other banks for help (business leakage).