Forfait - Purchase of export receivables by letter of credit | OTP banka

Forfait or the purchase of export receivables under a letter of credit is a financing instrument for the exporter (beneficiary) based on the sale of receivables from a documentary letter of credit with deferred payment.

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FORFAIT - PURCHASE OF EXPORT RECEIVABLES ACCORDING TO A LETTER OF CREDIT

Forfait or the purchase of export receivables under a letter of credit is an instrument of financing of the exporter (beneficiary) based on the sale of receivables under a deferred payment documentary letter of credit.
OTP Banka

Forfaiting or the purchase of export receivables under a letter of credit is an instrument of financing of the exporter (beneficiary) based on the sale of receivables under a deferred payment documentary letter of credit. The condition for the purchase of receivables is the fulfilment of the letter of credit conditions by the exporter. The bank then pays the exporter the discounted value of the receivable reduced by the purchase costs.

 

Advantages:

OTP Banka purchase of receivables without right of recourse;
OTP Banka financing without  taking on new debt and under more favorable terms;
OTP Banka improving the exporter's liquidity and cash flow;
OTP Banka without risk of  default and exchange rate;
OTP Banka the bank bears interest.


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How to purchase export receivables according to a letter of credit?

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