Forfaiting is becoming ever more important in the financial processing of export activities. It is of particular interest to small and medium-sized enterprises, where it complements the conventional credit transaction.
Forfaiting, or the non-recourse acquisition of export receivables, brings the following advantages:
- Inflow of sales revenues immediately upon delivery
- No foreign risk in the receivables
- Contraction of the balance sheet with a corresponding improvement of the balance sheet structure and equity ratio