Factoring is a low value short term financing forms. It involves the purchase of invoices, for an certain amounts and receivables of 90-120 days payment terms. After shipping your goods or services, the factor purchases the invoices, and advances cash to your company. Factoring provides liquid assets to small and medium businesses.

Forfaiting is the purchase of a series of credit instruments such as drafts, bills of exchange, other freely negotiable instruments on a nonrecourse basis. Nonrecourse means that if the importer does not pay, the forfeiter cannot recover payment from the exporter.

The exporter gets immediate cash on presentation of relevant documents and the importer is liable for the cost of the contract and receives credit for a certain time frame and at certain per cent interest. The forfaiter deducts interest at an agreed rate for credit period.

The debt instruments are drawn by the exporter, accepted by the importer, and will bear an aval or unconditional guarantee, issued by the importer’s bank. The forfeiter takes over responsibility for claiming the debt from the importer. The forfeiter holds the notes until maturity, or sells them to another investor. The holder of the notes presents each note to the bank at which they are payable.

This option allows you to take current production contracts or contracts for distribution to our bank that will provide an LC (Line of Credit) against those production contracts and allow a deferred payment option up to 12 months which also increases buying power for production or distribution and provides capital injection for you. The bank provides three payment options available to you on various instruments that are accepted for leverage.

• Option# 1 - Net present value 1Million interest rate 6% contract price up to 1Million 
• Option#2 - Net present value 1Million interest rate 0% contract price over 1Million 
• Option#3 - Net present value 1Million interest rate 3% contract price over 1Million 

The price option will be given to you once the funding package is reviewed but these are the 3 examples of possible options provided by our banks. Most banks provide price between 3-6% interest rate.

This option allows you to take current production contracts or contracts for distribution to our bank that will provide an LC (Line of Credit) against those production contracts and allow a deferred payment option up to 12 months which also increases buying power for production or distribution and provides capital injection for you. The bank provides three payment options available to you on various instruments that are accepted for leverage.

- Discount rate (Libor + risk premium)
- Days of grace Option fee
- Commitment fee
- Arrangement fee (if applicable)

Outline of instruments that can be utilized and program highlights:

	Non-recourse to exporter
	Converts credit sale to cash sale
	Offers fixed rates
	Provides 100 % financing
	Simple documentation
	Used or new equipment
	Not concerned about US origin of the goods
	Banks (L/C’s, Avals, Letters of Guarantee, Standby L/C’s)
	Governments - Sovereign Guarantees (eg. MOF)
	Corporate (Large)
	Other Corporate’s with Insurance Cover
	Purchase Order funding