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The Forfaiting is a method of export trade finance, by which ABC itself, or on another's behalf, purchases without recourse the forward draft accepted by the issuing bank or the committed receivables based on real trade.

1. Forfaiting is a method of trade finance without recourse, i.e., you will not be liable for the risks of the debtor's breach of contract once obtaining advances from ABC.
2. Forfaiting is procedurally simple to obtain as it does not require additional security since it is based solely on the credit of the correspondent bank.
3. The cash ABC advances in forfaiting helps improve your financial condition and solvency, and further, increases your financing capability.
4. Forfaiting substantially reduces overhead expenses by relieving you from the work and expenses related to asset management and collection of receivables.
5. With forfaiting, you will be able to apply for export write-offs and tax refunds immediately.
6. With forfaiting, you will be protected against the risks of interest rates, exchange rates, credit fluctuation, and country instability that often arise with deferred payments.
7. You can enter into contracts with importers on the condition of deferred payments, so you won't lose any business opportunities even though the importers may lack operating funds.
8. ABC will provide you a quote of the costs of a forfaiting in advance so that you may transfer the bank's fees into the price of your export products.

1. Submit relevant documents such as a copy of the L/C.
2. Complete and sign the Forfaiting Contract with ABC.
3. Submit your application for a specific transaction.
4. ABC provides a quotation based on the country risks of the L/C issuing bank, the credit standing of the issuing bank, the date of shipment, the financing amount, and the financing term.
5. You accept ABC's quotation and then submit the letter of payment transfer to ABC.
6. Once ABC receives the Authenticated Message for Acceptance from the issuing bank, ABC will make advances of the face value minus the discounting interest, relevant fees, and other charges to you. Additionally, ABC will issue you a special copy of the export write-off document. 

1. You shall abide by the applicable national laws and regulations with regard to the goods to be exported and must have a good business reputation.
2. You shall be the holder in due course of the forward draft or the owner of the receivables under the deferred payment L/C.
3. The draft or receivables shall be denominated in freely exchangeable currencies.
4. The period for payment under the draft or receivables shall be at least one month.
5. The forward draft under the L/C shall have been accepted by a bank while the bank under the deferred payment L/C shall have undertaken to make payment.
6. ABC shall have recourse against you if ABC is not able to collect the payment due as a result of any stop payment order issued by a court. 

Note: Please contact your local branch for detailed information about the service.

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