Benefits of forfaiting to importers:
- The Importer can match repayments to projected revenues, allowing for grace periods.
- The Importer can obtain 100% financing, and avoid paying out cash in advance.
- The Importer can pay interest on a fixed rate basis for the life of the credit, which will make budgeting simpler and safer.
- The Importer can access medium to long term financing which may be prohibitively expensive or completely unavailable locally.
- The Importer may be able to take advantage of export subsidy schemes which are often available from the Exporter's government.