Forfaiting | Austrian Anadi Bank


What is forfaiting?

Forfaiting (à forfait) means the non-recourse purchase of export receivables by a financial institution. Non-recourse, in this context, means waiving the right to recourse to the seller of the receivables (=exporter).

The exporter is liable for the fulfilment of the conditions in the basic contract, the legal validity of the receivables, and the authenticity of the documentation. The receivables can be documented either as a bill of exchange, a letter of credit with a deferment of payment, or as pure accounts receivables.

Therefore, forfaiting is a financing instrument, with which the exporter transforms a transaction with a payment target into a cash transaction via a discount on the receivables. The discount rate is subject to the risk assessment of the receivable.

At Austrian Anadi Bank we are always ready to help you.
Whether you need account assistance, product information or answers to online banking we are happy to help. Please feel free to contact us by email, telephone or get in touch with one of our branches directly.