The Life Cycle of a Forfaited International Transaction

Here we cover a simple step by step guide to the life-cycle of an international trade dealm that has been financed by a forfaiting lender.

The Process

1. Contact Eland Business Services Limited and supply the basic information about the deal for our initial assessment to take place.
2. We will then confirm the country availability, select the most appropriate forfaiting lender and offer an initial indication on costs.
3. The exporter will then supply all available documentation.
4. The lender confirms and commits to discounting your trade instrument
5. Commercial contracts are then exchanged between the exporter and exporter.
6. The exporter then ships the goods to the importer.
7. The Bank Guarantee is then given.
8. The importer sends relevant documents to the Exporter.
9. The exporter sends relevant documents to the Forfaiter.
10. The exporter receives payment from the forfaiter less the agreed discount.
11. At this point the exporter is freed from any more financial risk!
12. On maturity the forfaiter presents the relevant documents to the importers bank.
13. The importer pays the bank.
14. The bank pays the forfaiter.

The trade deal is now complete!