Forfaiting Advantages

Many companies are using the WWCB2B.COM forfaiting technique to penetrate new markets world-wide. This is not only because of its flexibility and speed, but these companies have also come to appreciate other advantages, namely:

Advantages to the Exporter:

• Cash is paid as soon as the necessary documentation is submitted and the discount effected. This immediately improves cash flow and lessens the company's borrowing requirements.

• Interest rate and exchange rate risks can be totally eliminated;

• All credit and cross border transfer risks are eliminated;

• Finance can be arranged for countries where there is no official export credit scheme;

• Transactions can be handled on a confidential basis;

• Relatively simple documentation secures the necessary finance on a fully "without recourse" basis;

• All of the administration work involved with the collection and payment of the receivable is removed

Advantages to the Importer:

• 100% finance can be offered to your buyer and the repayment profile can be tailored to the buyer's specific cashflow needs;

• All this can be achieved at competitive rates;

• The goods can be sourced from a variety of countries unlike the terms offered by official credit agencies.

• 100% finance is available to purchase the goods;

• Total financing costs are known in advance because the interest rate is fixed and a pre-determined repayment schedule can be structured in order that the importer can budget his cash-flow to suit his own individual requirements;

• Credit can be obtained in one or more freely transferable currencies;

• Goods can be financed which come from a variety of sources;

To assist cashflow a grace period can be built into the repayment structure allowing for no payment of interest or principal for a pre-agreed period following delivery of the goods.