In today’s ever changing business environment existing markets are shrinking and competition increasing. In order to survive and prosper we must all look to new, often relatively unknown markets. This comes against a backdrop of events that prove the world is a riskier place and that credit risk is, well riskier, Forfaiting is a tool for exporters and banks to mitigate these risks.

Market conditions can changes extremely fast, what is a good risk one day can become a problem risk the next. Exporters may find suddenly that their bankers are either unwilling or unable to help, or only at greatly increase risk premiums. Those with written commitments from their forfaiting bankers prior to any troubles simply export as usual and are paid by the forfaitor at the pre-agreed rate.