Forfaiting: A New Financing Tool For CFOs

July 1986
FE: The Magazine for Financial Executives;Jul/Aug1986, Vol. 2 Issue 7/8, p31
Trade Publication
The article focuses on benefits of forfaiting or nonrecourse financing. This device can be especially useful to manufacturers of capital goods such as those who produce computers, construction products, machinery and trucks as well as to those who distribute all kinds of commodities. Foremost, it eliminates virtually all credit risks. Forfaiting also makes it unnecessary for an exporter to purchase export credit insurance, which is both expensive and an administrative burden. Forfaiting can also be arranged quickly and quietly. Unlike many other kinds of export financing, it requires little documentation and is confidential.


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