London Forfaiting

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Export Credit Agencies and Forfaiting

Forfaiting offers Exporters flexibility within a simple structure and increases their ability to win business in competitive international markets. Forfaiting can be applied as a stand alone finance package or it can be used in conjunction with officially supported credits backed by Export Credit Agencies (ECA's) such as ECGD in the UK, Hermes in Germany, Sace in Italy, Coface in France and Ex-Im Bank in the USA.

Used on its own, forfaiting's flexibility enables Exporters to offer their clients financing for up to 100% of the contract value, whereas ECA backed finance is mainly restricted to only 85% of the value of the goods being supplied.

Used in conjunction with ECA backed credits, forfaiting can be used to finance the uncovered portion of the transaction, including the down payment or any ineligible foreign content. London Forfaiting has extensive experience working directly with exporters in providing financing solutions. Alternatively, it can work with the bank nominated to arrange the ECA backed credit.